You are debating getting into an investment. The investment has cash flows of as follows

Y0 = - 160,000

Y1 = 90,000

Y2= -10,000

Y3 = 90,000

Y4 = 60,000

1. Compute The payback period (show work)?

2. Compute NPV using 10% rate of return (show work)?

3. Which method can you NOT do, and why?

4. Answer logically, not mathematically, if the rate was 8% would your NPV be higher or lower, and why?