Carper Company is considering a capital investment of $374,000 in additional productive facilities. The new machinery is expected to have useful life of 6 years with no salvage value. Depreciation is by the straight-line method. During the life of the investment, annual net income and net annual cash flows are expected to be $20,570 and $85,000, respectively. Carper has an 7% cost of capital rate, which is the required rate of return on the investment.

Carper was presented with a second capital investment that provided similar production facilities as the first one. This investment cost $395,000, had a useful life of 7 years with a salvage value of $16,000. Depreciation is by the straight-line method. During the life of the investment, annual net income and net annual cash flows are expected to be $23,838 and $79,000 respectively. Carpers 7% cost of capital is also the required rate of return on the investment. Compute the cash payback period. (Round answer to 0 decimal places, e.g. 25.)

Cash payback period

years