Your company is trying to decide whether to invest in a new project opportunity based on the following information: - The project investment will total $250,000 over 2 years. - The forecast calls for an investment of $200,000 at the start of the project and the remaining $50,000 one year later - The company predicts that sales associated with the investment will be $100,000, $200,000, $400,000 and $200,000 per year, respectively, starting the year AFTER the initial investment is made. - Corresponding annual expenses are expected to be $50,000 the first year that sales are made and increase by $40,000 each year thereafter. - The required rate of return for this project is 12%

A) Using the payback method of financial valuation, what is the payback associated with this project? State your answer in years & months (assume that for any given year, the cash flow is spread out evenly by month eg. If the annual net cash flow is $12,000, the monthly cash flow can be assumed to be $1,200)

B) What is the Net Present Value (NVP) of this project? (show your work)

C) Based on the NPV that you calculated, should you invest in this project? Why or why not? (not just because NPV is negative or positive)