Compute the payback for each of these two separate investments:

Compute the payback period for each of these two separate investments: a. A new operating system for an existing machine is expected to cost $240,000 and have a useful life of four years. The system yields an incremental after-tax income of $69,230 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $9,000. b. A machine costs $190,000, has a $13,000 salvage value, is expected to last eight years, and will generate an after-tax income of $38,000 per year after straight-line depreciation. Answer is complete but not entirely correct. Payback Period Choose Denominator: Annual net cash flow Payback Period Choose Numerator Payback period Cost of investment years 1.66 240,000 144,288 $ a. 2.93 years 64,875 $ 190,000