Safety Watches Ltd is considering developing an App, for which a return of 10% is required. The following information is available about the project:

Year 0

Year 1

Year 2

Year 3

Year 4

Year 5

Development costs88,000-----Sales revenue-76,000160,000174,000204,00054,000Variable costs-38,00080,00087,000102,00027,000Fixed costs-15,00015,00015,00015,00015,00010% discount factor1.0000.9090.8260.7510.6830.621

Required:

1. Calculate the net cash flows each year
2. Calculate the payback period of the project
3. Calculate the net present value of the project
4. List three benefits of Net Present Value
5. What are the other two capital investment appraisal techniques? Briefly explain each.