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Need help filling in the blanks. Please show calculation. Compute the payback period for each of these two separate investments: a. A new operating system

image text in transcribed Need help filling in the blanks. Please show calculation.

Compute the payback period for each of these two separate investments: a. A new operating system for an existing machine is expected to cost $290,000 and have a useful life of four years. The system yields an incremental after-tax income of $83,653 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $11,000. b. A machine costs $180,000, has a $15,000 salvage value, is expected to last nine years, and will generate an after-tax income of $46,000 per year after straight-line depreciation. Payback Period Choose Numerator: Choose Denominator: Payback Period / Annual netcsh fowPayback period Cost of investment 290,000 180,000 a. $ 0

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