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. Year Net Cash Flow X Present Value of 1 at 12% Present Value Cumulative Present of Net Cash Value of Net Cash Flows Flows Initial investment $ 59 (109,000) x 1.0000 $ (109,000) $ (109,000) Year 1 42,000 x 0.8929 37,501 Year 2 42,000 x 0.7972 33,482 Year 3 42,000 x 0.7118 29,896 Year 4 42,000 x 0.6355 = 26,691 Year 5 42,000 x 0.5674 = 23,830 (Round break-even time answers to two decimal places.) 3.27 years