Blossom Inc. is considering modernizing its production facility by investing in new equipment and selling the old equipment. The following information has been collected on this investment:

Old Equipment				New Equipment
Cost		$80,400		Cost		$38,400
Accumulated depreciation		$41,700		Estimated useful life		8 years
Remaining life		8 years		Salvage value in 8 years		$5,000
Current salvage value		$10,680		Annual cash operating costs		$30,900
Salvage value in 8 years		$0
Annual cash operating costs		$36,000

Depreciation is $10,050 per year for the old equipment. The straight-line depreciation method would be used for the new equipment over an eight-year period with salvage value of $5,000.

(a)

Determine the cash payback period. (Ignore income taxes.) (Round answer to 3 decimal places, e.g. 15.275.)

Cash payback period

enter the cash payback period in years rounded to 3 decimal places

years