Solve

2. a) A project has a six year discounted payback period and an initial cost of $434,000. The project runs for a total of 8 years with $200,000 cash inflow in the last two years. If the market rate is 12% what is the NPV of this project? b) Is the following statement TRUE or FALSE? Provide a one-line explanation: "A zero-NPV project with an initial cost followed by positive cash inflow has to have a lifetime equal to its discounted payback period.quot