1. Fairfax Pizza is evaluating a project that would cost 88,000 dollars today. The project is expected to have the following other cash flows: 20,900 dollars in 1 year, 20,400 dollars in 2 years, 50,215 dollars in 3 years, and 7,600 dollars in 4 years. The cost of capital of the project is 7.44 percent. What is the payback period for the project? Round your answer to 2 decimal places (for example, 2.89, 14.70, or 6.00).
2. Oxygen Optimization is evaluating a project that would cost 88,000 dollars today. The project is expected to have the following other cash flows: 23,400 dollars in 1 year, 27,600 dollars in 2 years, 183,425 dollars in 3 years, and 8,900 dollars in 4 years. The cost of capital of the project is 6.12 percent. What is the discounted payback period for the project? Round your answer to 2 decimal places (for example, 2.89, 14.70, or 6.00).
Please show your work for both problems