Exercise $24-5$ Payback period computation; even cash flows LO P$1$

Compute the payback period for each of these two separate investments:

a$.$ A new operating system for an existing machine is expected to cost $$280,000$ and have a useful life of four years. The system

yields an incremental after$-$tax income of $$80,769$ each year after deducting its straight$-$line depreciation. The predicted salvage

value of the system is $$11,000.$

b$.$ A machine costs $$190,000,$ has a $$15,000$ salvage value, is expected to last eight years, and will generate an after$-$tax income of

$$44,000$ per year after straight$-$line depreciation.

options for top $2$ are

Accounts receivable

Annual net cash flow

Average total assets

Cost of goods sold

Cost of investment

Current assets

Current liabilities

Income before interest and inc tax

Net income

Net sales