It is going to cost your company $75,000 to add a piece of equipment to your manufacturing facility. You determined the annual benefits, presented below. Assume your WACC is 8%. You want to determine if this is a good capital investment. Show your work (numbers used) or no credit, round answers to 2 decimal places.

Year	$
1	22,500
2	24.000
3	25,000
4	20,000
5	14,000

1. What is the payback in years on this investment? (Hint these are uneven cash flows, see Payback with Uneven Cash Benefits in Chapter 10 Content)

2. What is the PVB? (hint Since these are uneven cash flows,you must treat each year as a lump-sum. It is not an annuity (equal stream of payments). You can also look at example on pp 265-266.