Northern Sun, Inc. At the beginning of year 1, Northern Sun, Inc., a food process...

Northern Sun, Inc.

At the beginning of year 1, Northern Sun, Inc., a food processing concern, is considering a new line of frozen entrees. The accompanying table shows projected cash outflows and inflows. Assume that all inflows and outflows are end-of-period payments.

Required:

The company’s cost of capital is 10 percent. Compute the following:

a. Net present value.

b. Payback.