Analysis Investmemt

The data in the table below shows the expected financial outcomes of an investment into new equipment Year Net cash flow Project 1 ('000) (100) Net cash flow Discount factor rate to calculate Project 2 NPV ('000) (5%) 0 (200) 1.00 1 150 50 0.95 2 100 100 0.91 150 150 0.86 Required: Answer the following questions and clearly show your workings: 1) Based on the data included in the table above, calculate the payback period of the investment (2 marks) i) Based on the data included in the table above, calculate the Net Present Value (NPV) of the investment (8 marks) iii) Comment on your results for parti) and ii) above (4 marks)