Chapter 8 | Question 6: Please answer the questions below (see image and empty boxes in the images)! Thank you!:

You are evaluating a project that will cost , but is expected to produce cash flows of per year for years, with the first cash flow in one year. Your cost of capital is and your company's preferred payback period is three years or less. a. What is the payback period of this project? b. Should you take the project if you want to increase the value of the company?

You have an opportunity to invest $51,000 now in return for $60,900 in one year. If your cost of capital is 8.2%, what is the NPV of this investment? The NPV will be $ (Round to the nearest cent.)