points) possible Gateway Graphics is considering an investment in new printing equipment costing $540,000. The equipment will be depreciated on a straight-line basis over a five-year life and is expected to generate net cash inflows of $128,000 the first year. $154,000 the second year, and $162.000 every year thereafter until the fifth year. What is the payback period for this investment? The residual value is zero. (Round your answer to two decimal places.) OA. 483 years OB 2.95 years OC. 3.22 years OD. 359 years Outrigger Leisure Products sells 2,000 kayaks per year at a price of $480 per unit. Outrigger sells in a highly competitive market and uses target pricing. The company has $990 000 of assets and the shareholders wish to make a profit of 18% on assets. Fixed costs are $475,000 per year and cannot be reduced. Assume all products produced are sold. What are the target variable costs? O A. $140,725 OB. $781,800 O c. $306,800 OD. $990,000