After a bad accident Anton receives a large sum in compensation. He is thinking about using it to invest in a stretch limousine to hire out for special occasions. The cost of the limousine is £100,000. Anton is due to retire in six years, at which stage he thinks he will be able to sell the limousine for £40,000. The net cash inflows for the venture, after allowing for the driver's wages and other direct expenses are:
![1873_67be2ffa-bc18-4db9-9dd2-b81342ec9e58.png](https://secure.tutorsglobe.com/CMSImages/1873_67be2ffa-bc18-4db9-9dd2-b81342ec9e58.png)
(a) Find the payback period for this venture.
(b) Calculate the net present value using a discount rate of 8%.