National Rodeo Association, a not-for-profit organization, is considering purchasing a new enterprise software system for $90,000. This investment is projected to have an eight-year useful life, and a salvage value of $8,800. Its anticipated eight-year life is projected to save the organization approximately $18,000 each year in operating costs. In addition, the association needs an increase of $5,000 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 eight 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. Also, 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 10 percent, what is the net present value (NPV) of this investment? Round your calculation to whole dollars (i.e., zero decimal points). 3. Do you recommend the purchase? Why?