Project A requires a $435,000 initial investment for new machinery. Project A is expected to yield income of $22,500 per year and net cash flow of $101,600 per year for the next five years. Compute Project As payback period.

\begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{2}{c|}{ Payback Period } & = & Payback Period \\ \hline Numerator: & / & Denominator: & = & Payback period \\ \hline Initial investment & / & Annual net cash flow & = & 0 \\ \hline$ & 435,000 & / & & \end{tabular}