RobinsonRobinson

Hardware is adding a new product line that will require an investment of

$1,500,000.

Managers estimate that this investment will have a 10-year life and generate net cash inflows of

$310,000

the first year,

$265,000

the second year, and

$245,000

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

+ (

/

) =

years