Mini Case Study - Sage Laundromat Sage Laundromat is trying to enhance the services it provides to customers, mostly college students. It is looking into the purchase of new high-efficiency washing machines that will allow for the laundry's status to be checked via smartphone. Sage estimates the cost of the new equipment at $159,000. The equipment has a useful life of 9 years. Sage expects cash fixed costs of $80,000 per year to operate the new machines, as well as cash variable costs in the amount of 5% of revenues. Sage evaluates investments using a cost of capital of 10%. Required: Sage expects the following uneven stream of incremental cash revenues from installing the new washing machines: Based on this estimated revenue stream, what are the payback and discounted payback periods for the investment? What are some of the non-financial factors that Sage should consider before making its choice