Maxwell company is relegated to a venture ahead of schedule in the venture lifecycle. Something that must be done is to do a justification for the project. Since very little information is known about the project, the estimates are considered to be rough estimates. The accompanying table is the project managers gauge of the income that will occur throughout the following five years: End of Year Cash Flow In Cash Flow out 1 0 500,000 2 300,000 90,000 3 400,000 100,000 4 100,000 175,000 5 50,000 35,000

1. Apply the formula to calculate the payback period for this project? (5 marks)

Construct the net cash flow at the end of five years?