Rox Company, Inc. is considering purchasing a new packaging machine with a useful life of 6 years. The initial outlay for the machine is $200,000. The required rate of return for Rox Company, Inc., is 12.0%. The expected cash flows are as follows:

Year Expected Cash Flow

1 $20,000

2 $40,000

3 $70,000

4 $70,000

5 $60,000

6 $40,000

Calculate the regular Payback period of the investment (rounded to the first decimal)

For the company in the previous question, calculate the Net Present Value (NPV) of the investment

A. +$2,158 B. -$2,158 C. -$1,633 D. +$1,633 E. +$3,255