(a) The pay back period is 50/8 = 6.25

      The NPV  = 8/(1+0.08) + 8/(1+0.08)^2+…+10/(1+0.08)^10 – 50=3.68 millon.

(b) We should not accept the project. Although the net present value of the project is greater than 0, the payback period is much longer than the acceptance criterior of the managemnet sets. Thus, we should not accept the project.