Beyer Company is considering the purchase of an asset for $290,000. It is expected to produce the following net cash flows. The cash flows occur evenly within each year. Net cash flows Year 1 $70,000 Year 2 $40,000 Year 3 $70,000 Year 4 $200,000 Year 5 $20,000 Total $400,000 Compute the payback period for this investment. (Cumulative net cash outflows must be entered with a minus sign. Round your Payback period answer to 2 decimal place.) Year Cumulative Net Cash Inflow Cash Inflow (Outflow) (Outflow) $ (290,000) 0 1 2 3 4 5 Payback period = Compute the payback period for each of these two separate investments: a. A new operating system for an existing machine is expected to cost $250,000 and have a useful life of six years. The system yields an incremental after-tax income of $72,115 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $10,000. b. A machine costs $210,000, has a $13,000 salvage value, is expected to last eight years, and will generate an after-tax income of $39,000 per year after straight-line depreciation. Payback Period Choose Numerator: Choose Denominator: Payback Period Payback period 1 a. b. =