The table below shows the expected annual cost and benefits of Project A that is expected to serve BlueMart for another 4 years after a 1 year of development program that was succesfully completed recently.

 

1. Calculate the Payback Period, correct to 2 decimal places.
   Calculate the Net Present Value (NPV) , correct to 2 decimal places. The recent interect rate is 4.5%.

Expected Benefits / Cost Expected Benefits Cost Year 1 $200,000 Year 2 $150,000 $70,000 Year 3 $160,000 $80,000 Year 4 $170,000 $90,000 Year 5 $180,000 $100,000