Given the following financial data for an investment:
•Initial investment: $200,000
•Year 1 net cash flow: $30,000
•Year 2 net cash flow: $50,000
•Year 3 net cash flow: $70,000
•Year 4 net cash flow: $90,000
•Year 5 net cash flow: $110,000
Calculate:
1.The payback period.
2.The cumulative net cash flows for each year.
3.Whether the investment is fully recovered within five years.
4.The exact year and month when the payback period is achieved.