QS 24-2 (Algo) Payback period and equal cash flows LO P1 Project A requires a $340,000 initial investment for new machinery. Project A is expected to yield income of $28,200 per year and net cash flow of $89,200 per year for the next five years. Compute Project A's payback period. Answer is complete but not entirely correct. Numerator: Cost of goods sold Payback Period Denominator: Annual net cash flow Payback Period Payback period 340,000/ 151,560 2.24 years