A company that manufactures recreational pedal boats has approached James Cichanowski to ask if he would be interested in using Current Designs' rotomold expertise and equipment to produce some of the pedal boat components. James is intrigued by the idea and thinks it would be an interesting way of complementing the present product line. One of James's hesitations about the proposal is that the pedal boats are a different shape than the kayaks that Current Designs produces. As a result, the company would need to buy an additional rotomold oven in order to produce the pedal boat components. This project clearly involves risks, and James wants to make sure that the returns justify the risks. In this case, since this is a new venture, James thinks that a 15% discount rate is appropriate to use to evaluate the project. As an intern at Current Designs, James has asked you to prepare an initial evaluation of this proposal. To aid in your analysis, he has provided the following information and assumptions. 1. The new rotomold oven will have a cost of $240,000, a salvage value of $0, and an 8-year useful life. Straight-line depreciation will be used. 2. The projected revenues, costs, and results for each of the 8 years of this project are as follows. Sales $203,000 Less: Manufacturing costs $134,000 Depreciation 30,000 Shipping and administrative costs 15,000 179,000 Income before income taxes 24,000 Income tax expense 9,080 Net income $14,920 Click here to view PV table. (b) Compute the payback period. (Round answer to 2 decimal places, e.g. 15.25.) Payback period years