Use this information to answer questions 9 18

Intel is contemplating a new project where they will bring their computer chip manufacturing business back to the United States. They are estimating that they will invest $415,000 initially then will have positive cash flows over the next four years of:

Year 1: $45,000

Year 2: $125,000

Year 3: $160,000

Year 4: $175,000

Regardless of your answer in the previous question use a WACC of 7.2%. (This is NOT the answer you should have gotten in part 1.)

1. Based on the information in Part II of the Intel project, what is the payback period for the project?

   	A.	2.49 years
   	B.	3.49 years
   	C.	3.59 years
   	D.	This project has no payback period

2. Based on the information in Part II of the Intel project, what is the discounted payback period for the project?

   	A.	2.08 years
   	B.	3.08 years
   	C.	3.82 years
   	D.	This project has no discounted payback period