arper was presented with a second capital investment that provided similar production facilities as the first...

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arper was presented with a second capital investment that provided similar production facilities as the first one. This investment ost $405,000, had a useful life of 7 years with a salvage value of $15,000. Depreciation is by the straight-line method. During the fe of the investment, annual net income and net annual cash flows are expected to be $23,940 and $81,000 respectively. Carper's 7% cost of capital is also the required rate of return on the investment. Compute the cash payback period. (Round answer to O decimal places, eg. 25.) Cash payback period 5 years arper was presented with a second capital investment that provided similar production facilities as the first one. This investment ost $405,000, had a useful life of 7 years with a salvage value of $15,000. Depreciation is by the straight-line method. During the fe of the investment, annual net income and net annual cash flows are expected to be $23,940 and $81,000 respectively. Carper's 7% cost of capital is also the required rate of return on the investment. Compute the cash payback period. (Round answer to O decimal places, eg. 25.) Cash payback period 5 years