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Exercise 11-5 Payback period computation; even cash flows LO P1 Compute the payback period for each of these two separate investments: a. A new operating

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Exercise 11-5 Payback period computation; even cash flows LO P1 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 salvege value of the system is $10,000 b. A machine costs $130,000 has a $14,000 salvage value, s expected to last eleven years and will enrate an afer sa $43,000 per year after straight-line depreciation. Payback Period Choose Numerator Choose Denominator Payback Period Payback period a

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