Top management is concerned about how long it will take for this new project to pay back the initial investment of $100,000. You have determined that the project should generate inflows of $50,000, $75,000, $100,000, $80,000, and $50,000 for the next five years. Your firms required rate of return is 10%.

2 How long will it take to pay back the initial investment?

What is the project NPV?

Show your cash flow table including your discount factor assuming the investment occurs in year 0 and the first cash inflow begins in year 1.