1. A project that will last for 12 years is expected to have equal annual cash flows of $100,900. If the required return is 8.6 percent, what maximum initial investment would make the project acceptable?
2. Fairfax Pizza is evaluating a project that would cost 96,000 dollars today. The project is expected to have the following other cash flows: 24,900 dollars in 1 year, 27,700 dollars in 2 years, 78,909 dollars in 3 years, and 8,800 dollars in 4 years. The cost of capital of the project is 8.31 percent. What is the payback period for the project? Round your answer to 2 decimal places