E26-19 Using payback to make capital investment decisions: Rapp Hardware is adding a new product line that will require an investment of $1,418,000. Managers estimate that this investment will have a 10-year life and generate net cash inflows of $310,000 the first year, $290,000 the second year, and $250,000 each year thereafter for eight years. Compute the payback period. Round to one decimal place Note: I've done already

Exercise S26-19 must be completed before attempting Exercise S26-20.

E26-20 Using ARR to make capital investment decision: Refer to the Rapp Hardware information but 16.67%

Exercise E26-19. Assume the project has no residual value. Compute the ARR for the investment. Round to two places.