Virginia Tool Co$.$ is considering an investment in a B$2$B system for purchasing office supplies and non$-$operating inputs. The project would require an initial investment of $$400,000$ and have an expected life of $6$ years. The income is expected to be $$95,000$ in each of the first $4$ years and $$80,000$ in each of the next $2$ years. The company$$s discount rate is $8$ percent.

Required:

a$.$ Calculate the payback period.

b$.$ Calculate the NPV on the project.

c$.$ Discuss whether this is acceptable.