3. 8.27 A vibrating sieve shaker in a soil analysis laboratory has a first cost of $8000 and an expected salvage value of $500 when it is sold. A positive cash flow of only $900 per year can be attributed directly to the shaker.

(a) Determine the payback period if the required return is 8% per year.

(b) If the asset will be in service for an estimated 12 years, should it be purchased?