please help with payback period. see attached.

24. 31 Assume that United Technologies is evaluating a proposal to change the company's manual design system to a computer aided design (CAD) system. The proposed system is expected to save 10,000 design hours per year; an operating cost savings of $40 per hour. The annual cash expenditures of operating the CAD system are estimated to be $200,000. The CAD system requires an initial investment of $500,000. The estimated life of this system is 5 years with no salvage value. The tax rate is 40%, and the United Technologies uses straight-line depreciation for tax purposes. United Technologies has a cost of capital of 16%. REQUIRED a. Compute the annual after tax cash flows related to the CAD Project. b. Compute each of the following for the project: a. Payback period b. Net present value 24.32 Assume the same facts as given in 24-31, except that management intends to use doubledeclining balance depreciation with a switch to straight-line depreciation (applied to any undepreciated balance) starting year 4. REQUIRED a. Determine the project's net present value