Robinson Hardware is adding a new product line that will require an investment of $1,454,000. Managers estimate

Question:

Robinson Hardware is adding a new product line that will require an investment of $1,454,000. Managers estimate that this investment will have a 10-year life and generate net cash inflows of $300,000 the first year, $270,000 the second year, and $260,000 each year thereafter for eight years.
Requirement
1. Compute the payback period.