Required information [The following information applies to the questions displayed below.] Project A requires a $420,000 initial investment for new machinery with a five-year life and a salvage value of $36,500. The company uses straight-line depreciation. Project A is expected to yield annual net income of $27,100 per year for the next five years. Compute Project A's payback period. Choose Numerator: Cost of investment Payback Period Choose Denominator: = Payback Period Annual net cash flow Payback period 36,500= 11.51 years $ 420,000