The following details are provided by a manufacturing company Product line $1,080,000 14 years Investment Useful life Estimated annual net cash inflows for first year Estimated annual net cash inflows for second year Estimated annual net cash inflows for next ten years Residual value Depreciation method Required rate of return $500,000 $420,000 $250,000 $90,000 Straight-line 15% Calculate the payback period for the investment (Round your answer to two decimal places.) O A. 5.75 years OB. 2.16 years OC. 6.31 years OD. 2.64 years O P Starforce Avionics makes aircraft instrumentation. Its basic navigation radio requires $50 in variable costs and 85,000 per month in fixed costs. Further processing the radio, to enhance its functionality, will require an additional $28 per unit of variable costs but no change to the fixed costs The marketing manager believes that the company would be able to increase the sales price from $290 to $310. If Starforce decides to further process the product, operating income would NIM A. increase by $78 per unit B. increase by $28 per unit C. remain the same O D. decrease by $8 per unit