Payson Manufacturing is considering an investment in a new automated manufacturing system. The new system requires an investment of $$1,200,000$ and either has:

Even cash flows of $$800,000$ per year or

The following expected annual cash flows: $$150,000,$ $$150,000,$ $$400,000,$ $$400,000,$ and $$100,000.$

Required:

Calculate the payback period for each case. Round your answer to one decimal place.

Item Answer

a$.$ fill in the blank $1$

years

b$.$ fill in the blank $2$

years