You have an opportunity to invest in an income generating asset at an initial cost of N$55 000 and you are expecting an annual cash inflow from this investment of N$18 000 for the first 3 years. Due to improving technology you will have to upgrade this asset at an additional cost of N$15 000 early in the 4th year, where after the expected cash inflow increases to N$21 000 for the next 4 years, before the asset has to be replaced. The cost of capital (discount rate) is set at 8%. Determine: 1. The net present value (NPV) 2. The discounted payback period 3. Would you invest in this asset? Why? (10 marks) (2 marks) (2 marks) Interest Factors: PERIOD 1 2 3 14 5 6 17 Future Value Interest Factors (FVIF) 1.080 1.166 1.260 1.360 1.469 1.587 1.714 Present Value Interest Factors (PVIF) 0.9260.8570.7940.7350.6810.630 0.583