A shoe manufacturer is evaluating new equipment that would custom fit athletic shoes. The new equipment costs $105,000 and will generate $40,000 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 Present Value of Cumulative Present Value Net Cash Flows of Net Cash Flows S $ Initial investment Year 1 Present Net Cash Flow 1 Value of 1 at 1596 $ (105,000) 1.0000 = 40,000 x 0.8696 = 40,000 x 0.7561 = 40,000 x 0.6575 = 40,000 0.5718 40,000 x 0.4972 = (105,000) (70,216) Year 2 (105,000) 34,784 30,244 26,300 22,872 19,888 Year 3 = Year 4 Year (Round break-even time answers to two decimal places.)