Robinson Hardware is adding a new product line that will require an investment of $1,550,000. Managers estimate that this investment will have a 10-year life and generate net cash inflows of 330,000 the first year, 275000 the second year, and 250000 each year thereafter for eight years. The investment has no residual value. Compute the payback period.

First enter the formula, then calculate the payback period. (Round your answer to two decimal places.)

Full years + ( Amount to complete recovery in next year Projected cash inflow in next year ) = Payback Part

5 + ($195000 + 250000) = 5.78 years

Tell me how you get the Amount to complete recovery in next year step by step.