calculate cash back period

ve suomission) BioFarm Inc. wants to replace its current equipment with new high-tech equipment. The existing equipment was purchased 5 years ago at a cost of $125,000. At that time, the equipment had an expected life of 10 years, with no expected salvage value. The equipment is being deprecated on a straight-line basis. Currently, the market value of the old equipment is $40,900. The new equipment can be bought for $172,380, including installation. Over its 10-year life, it will reduce operating expenses from $190,100 to $150,000 for the first six years, and from $206,500 to $191,800 for the last four years, Networking capital requirements will also increase by $20,900 at the time of replacement. It is estimated that the company can sell the new equipment for $24,800 at the end of its life. Since the new equipment's cash flows are relatively certain, the project's cost of capital is set at 10%, compared with 15% for an average-risk project. The firm's maximum acceptable payback period is 5 years. Click here to view Pytable. (a) Your answer is correct. Calculate the initial investment amount. Initial investment 152380 ) x Your answer is incorrect. Try again. Calculate the project's cash payback period. (Round answer to 2 decimal place X Cash payback period 3.27 years y By accessing this Question Assistance, you will learn while you earn points based