10. Auto Corp. is evaluating a capital project using the payback method. The project has an initial cash outflow of $650,000 and the annual after-tax cash inflows for the project are below. For capital projects management requires a rate of return of 13.0%.

Cash inflows are as follows: year 1 $175,000, year 2 $175,000, year 3 $200,000, year 4 $100,000 year 5 $100,000, year 6 $75,000, and year 7 $50,000.

How many years is the payback period of the project?

11. United International Corp. is evaluating a capital project using the net present value and internal rate of return methods. The project has an internal rate of return of 12.0%. When using the net present value method management requires a rate of return of 12.0% for capital projects.

What is the net present value of the project?