The NH Inn is evaluating a new POS system that would have a total cost of $60,000. Management has determined that this new system would generate efficiencies that would result in incremental cash flows over the next three years of $20,000, $30,000, and $40,000. Management has also determined that its discount rate would be 6%.

1. Determine the payback period of this project.

2. Determine the NPV of this project