investment appraisal

Global Publishing is considering a new line of business in Zambia. In analyzing the potential business, the following information is accumulated. The new business will require a capital expenditure of $15,000. This expenditure will be used to purchase a new equipment at year zero. The equipment will have no salvage value after 4 years. The business is expected to generate revenue of $3,000; $4,000; $5,000; and $2,000. Each year the firm will incure an operating cost equal to 25 percent of the annual revenue. The project's cost of capital is 10 percent Calcualte the discounted payback period