E26-19 Using payback to make capital investment decisions Robinson Hardware is adding a new product line that will require an investment of $1,454,000. Managers estimate that this investment will have a 10-year life and generate net cash inflows of $300,000 the first year, $270,000 the second year, and $260,000 each year thereafter for eight years. Compute the payback period. Note: Exercise S26-19 must be completed before attempting Exercise S26-20. E26-20 Using ARR to make capital investment decisions Refer to the Robinson Hardware information in Exercise E26-19. Assume the project has no residual value. Compute the ARR for the investment. Round to two places. E26-21 Using the time value of money Janice wants to take the next five years off work to travel around the world. She estimates her annual cash needs at $28,000 (if she needs more, she will work odd jobs). Janice believes she can invest her savings at 8% until she depletes her funds. Requirements 1. How much money does Janice need now to fund her travels? 2. After speaking with a number of banks, Janice learns she will only be able to invest her funds at 4%. How much does she need now to fund her travels? E26-24 Using NPV and profitability index to make capital investment decisions Use the NPV method to determine whether Kyler Products should invest in the following projects