1. You work for a professional sport franchise that is considering purchasing a new digital scoreboard or renovating signage area on the outside of the stadium. The franchise can take out one loan at 7% interest that it can use for either investment but not both investments. Use the following information to decide whether or not to buy the scoreboard.

Signage area

The signage area renovation will cost $100,000.

The renovations can be depreciated using straight-line depreciation over 39 years. The company's tax rate is 21%.

The franchise expects to sell an extra $10,000 worth of sponsorships a year with the renovated signage area for the remaining 39 years of life of the stadium.

J.) What is the project's discounted payback period? (Please show your work)