A shoe manufacturer is evaluating new equipment that would custom fit athletic shoes. The new equipment costs $90,000 and will generate $35,000 in net cash flows for five years. Note: Negative cumulative cash flows should be indicated with a minus sign. Round break-even time answers to two decimal places. Determine the break-even time for this equipment. Year Initial investment Year 1 Year 2 Year 3 Year 4 Year 5 $ Net Cash Flow Answer is not complete. Present Value of 1 at 10% 1.0000 0.9091 0.8264 0.7513 0.6830 0.6209 X X (90,000) 35,000 X 35,000 X 35,000 35,000 35,000 X X X = = = = = = Present Value of Net Cash Flows $ (90,000) 31,819 28,924 26,296 23,905 21,732 Cumulative Present Value of Net Cash Flows $ (90,000)

A shoe manufacturer is evaluating new equipment that would custom fit athletic shoes. The new equipment costs $90,000 and will generate $35,000 in net cash flows for five years. Note: Negative cumulative cash flows should be indicated with a minus sign. Round break-even time answers to two decimal places. Determine the break-even time for this equipment