Q2: Carrefour is expecting its new center to generate the following cash flows:

Years	0	1	2	3	4	5
Initial investment	($35,000,000)
Net operating cash flows		$6,000,000	$8,000,000	$16,000,000	$20,000,000	$30,000,000

a. What is the payback period for this new center. (1 mark)

b. Calculate the net present value using a cost of capital of 15 percent. Should the project be accepted? (1 mark)

note: Avoid plagiarism. The work should be in your own words; copying from students or other resources without proper referencing will result in ZERO marks. No exceptions.