Compute the payback period for each of these two separate investments a. A new operating system for an existing machine is expected to cost $270,000 and have a useful life of six years. The system yields an incremental after-tax income of $77.884 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $10,000. b. A machine costs $200,000, has a $14.000 salvage value, is expected to last ten years, and will generate an after-tax income of $43,000 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 121.217 270.000 2.23 years a. 69.571x 2.87 200,000 years