National Radio Association, a not-for-profit organization, is considering purchasing a new enterprise software system for $88,000. This investment is projected to have an seven-year useful life, and a salvage value of $4,000, the investment is projected to save the organization approximately $16,500 each year in operating costs. In addition to the cost of the software system, the association needs an increase of $2,000 in net working capital (other than cash) in the first year, which will not be released (that is, converted back to cash) until the end of seven years. Required: 1. What is the payback period for this proposed investment? (Assume that the cash flows, other than salvage value, occur evenly throughout the year. Round your answer to 2 decimal places, e.g., 2.452 years = 2.45 years.) 2. If the Association has a required rate of return of 8 percent, what is the net present value (NPV) of the proposed investment? Round your calculation to whole dollars (i.e., zero decimal points). (The PV annuity factor for 8% for 7 years is 5.206. while the PV $1 factor for 8% in 7 years is 0.623