The company Transport KDG Co. company is planning an investment for their IT centre. The cost of the investment is 34,000, which it is be paid for starting this investment. The investment is expected to have 4 years useful life. There is not any salvage value (resale value after depreciation is complete at the end of its useful life of the investment). Depreciation is expensed on a straight-line basis (meaning the same amount is expensed in each period over the assets useful life). The net income (profit after taxes) of the potential investment per year is tabulated below: Year Profit after taxes Year 1 8,100 Year 2 8,500 Year 3 8,800 Year 4 9,300 Last, acceptable payback period for the investment is 2.5 years.

Using this information, you are required to: a. Evaluate the investment with Simple payback evaluation technique (Assuming two decimal points). Should a company run this investment?