1. Famebook is evaluating a project with the following cash flows (note that the cash flow in year 0 is the projects initial investment).

Cash Flows
0	($800,000)
1	$200,000
2	$300,000
3	$300,000
4	$400,000
5	$300,000

1. Calculate the payback period for Famebooks project (ROUND TO 0.00)
2. Famebook has a 10% required return. Calculate the discounted payback period for Famebooks project (ROUND TO 0.00).

3. What is the advantage of using discounted payback period (as opposed to payback period in its simple form)?

If Famebook had a payback period of 4 years, should it take the project according to the payback period?