Project A requires a $305,000 initial investment for new machinery with a five-year life and a salvage value of $495,00. The company uses straight-line depreciation. Project A is expected to yield an annual net income of $23,000 per year for the next five years.

Compute Project A's payback period.

Payback Period
	Choose Numerator:	/	Choose Denominator:	=	Payback Period
	Cost of investment	/	Annual net cash flow	=	Payback period
	$305,000	/		=	0