3. What would the expected net cash inflow per year be if the hourly wage rate u d for se this analysis was increased by 25% to reflect the cost of employee benefits? 4. What is the payback period of the second shrinkwrap machine when the increase wage rate is used to calculate the expected net cash inflow per year? Round your swer to the nearest two decimal places. an- 5. Did the payback period using the increased hourly wage rat e increase or decrease as compared to the original payback period using the hourly rate without any benefits included? Explain. E12-19A Compute payback period-unequal cash inflows (Learning Objective 2) Robinson Hardware is adding a new product line that will require an investment of $1,550,000. Managers estimate that this investment will have a 10-year life and generat net cash inflows of $330,000 the first year, $275,000 the second year, and $250,000 each year thereafter for eight years. The investment has no residual value. Compute the pay- back period E12-20A ARR with unequal cash inflows (Learning Objective 2) Refer to the Robinson Hardware information in E12-19A. Compute the A investment. RR for the E12-21A Compute and compare ARR (Learning Objective 2) Star Golf Products is considering whether to upgrade its equipment. Managers are con- sidering two options. Equipment manufactured by Heatherwood Inc. costs $900,000 and will last six years and have no residual value. T annual operating income of $153,000. Equipment manufactured by Riverland Limited costs $1,350,000 and will remain useful for seven years. It promises annual operating in come of $249,750, and its expected residual value is $100,000. he Heatherwood equipment will generate Which equipment offers the higher ARR