1. Cole Products is considering acquiring a manufacturing plant. The purchase price is $1,854,150. The owners believe the plant will generate net cash inflows of $309,025 annually. It will have to be replaced in five years. To be profitable, the investment's payback period must occur before the investment's replacement date. Use the payback method to determine whether Cole Products should purchase this plant. First enter the formula, then calculate the payback period. (1) + (2) = Payback period years Determine whether Cole should purchase this plant. The payback occurs (3) - (1) O the plant must be replaced, so the payback method (4) purchasing the plant. O Accounting rate of return O Expected annual net cash inflow O Future value Initial investment O Net present value Present value Residual value O Total net cash inflows (2) O O Accounting rate of return Expected annual net cash inflow O Future value O Residual value Initial investment O Net present value O Total net cash inflows (3) O after O Present value O exactly when O before (4) O does not support O supports