The Hampton Inn is evaluating a new POS system that would have a total cost of $50,000. Management has determined that this new system would generate efficiencies that would result in incremental cash flows over the next three years of $12,000, $22,000, and $32,000. Management has also determined that its discount rate would be 8%.

1. Determine the payback period of this project.

2. Determine the NPV of this project