A shoe manufacturer is evaluating new equipment that would custom fit athletic shoes. The new equipment costs $109,000 and will generate $42,000 in net cash flows for five years. (Negative cumulative cash flows should be Indicated with a minus sign.) Determine the break-even time for this equipment. Present Year Net Cash Flow x Value of 1 at 12% Present Value of Net Cash Cumulative Present Value of Net Cash Flows Flows Initial investment $ (109,000) x 1.0000 = S (109,000) $ (109,000) Year 1 42,000 x 0.8929 = 6 (70,818) Year 2 42,000 x 0.7972 = (36,107) Year 3 42,000 x 0.7118 = (4,552) Year 4 42,000 x 0.6355 24,134 Year 5 42,000 x 0.5674 = 50,213 $ -108,994 (Round break-even time answers to two decimal places.) Break-even time 3.16 years