6 Part 1 of 3 4.61 points Exercise 16-37 Payback, Accounting Rate of Return; Net Present Value; Taxes (Sections 1, 2, and 3) (LO 16-1, 16-6, 16-8) [The following information applies to the questions displayed below.] Metro Car Washes, Inc., is reviewing an investment proposal. The initial cost as well as the estimate of the book value of the investment at the end of each year, the net after-tax cash flows for each year, and the net income for each year are presented in the following schedule. The salvage value of the investment at the end of each year is equal to its book value. There would be no salvage value at the end of the investment's life. Annual Net After-Tax Year Initial Cost and Book Value Cash Flows 0 $375,000 1 250,000 $166,000 2 150,000 143,000 eBook 3 75,000 120,000 4 25,000 97,000 5 74,000 Print References Annual Net Income $41,000 43,000 45,000 47,000 49,000 Management uses a 16 percent after-tax target rate of return for new investment proposals. Use Appendix A for your reference. (Use appropriate factor(s) from the tables provided.) Exercise 16-37 Part 1 Required: 1. Compute the project's payback period. Assume that the cash flows in years 1 through 5 occur uniformly throughout each year. (Round your answer to 2 decimal places.) Payback period years