Q5 (20 marks) Saturn Ltd. wants to automate one of its production processes. The new equipment will cost $180,000. In addition, Saturn will incur installation and testing costs of $5,000 and $8,500 respectively. The expected life of the equipment is 8 years and the salvage value of the equipment is estimated at $18,000. The annual cash savings are estimated at $32,000. The company uses straight-line depreciation and has a required rate of return of 14% Ignore income taxes What is the payback period for the investment Saturn Ltd. is considering