A company that manufactures recreational pedal boats has approached Mark Cichanowski to ask if he would be interested in using Current Designs' rotomold expertise and equipment to produce some of the pedal boat components. Mark is intrigued by the idea and thinks it would be an interesting way of complementing the present product line. One of Mark'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 Mark wants to make sure that the returns justify the risks. In this case, since this is a new venture, Mark thinks that a 15% discount rate is appropriate to use to evaluate the project. As an intern at Current Designs, Mark has sked you to prepare an initial evaluation of this proposal. To aid in your analysis, he has provided the following information and assumptions. 1 2 The new rotomold oven will have a cost of $246,000, a salvage value of $0, and an 8-year useful life. Straight-line depreciation will be used. The projected revenues, costs, and results for each of the 8 years of this project are as follows. Sales $203,600 Less: Manufacturing costs $128,400- Depreciation 30,750 Shipping and administrative costs 20,000 179.150 Income before income taxes 24,450 Income tax expense 9,455 Net income $14.995 Compute the payback period. (Round answer to 2 decimal places, eg. 15.25) Payback period eTextbook and Media Save for Later Question Part Score (c) years Attempts: 0 of 3 used Submit Answer The parts of this question must be completed in order. This part will be available when you complete the part above. Question Part Score (d) The parts of this question must be completed in order. This part will be available when you complete the part above. Question Part Score -/4 --16 --16