10.18

Creative Solutions, Inc., has just invested $5,604,100 in new equipment. The firm uses a payback period criteria of not accepting any project that takes more than four years to recover its costs. Management anticipates cash flows of $546,500, $893,800, $729,700, $1,064,500, $1,967,900, and $2,006,400 over the next six years. (Round answer to 2 decimal places, e.g. 15.25.) What is the payback period of this investment? Should Creative Solutions, Inc. go ahead with this project