the nearest two decimal places 3. What would the expected net cash inflow per year be if the hourly WA this analysis was increased by 25% to reflect the cost of employee benefits? 4. What is the payback period of the second shrinkwrap machine when the increased wage rate is used to calculate the expected net cash inflow per year? Round your an- swer to the nearest two decimal places. 5. Did the payback period using the increased hourly wage rate increase or decrease as compared to the original payback period using the hourly rate without any benefits included? Explain. E12-19A Compute payback period-unequal cash inflows (Learning Objective 2) 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, $275,000 the second year, and $250,000 each year thereafter for eight years. The investment has no residual value. Compute the pay- back period. olo questroE12-20A ARR with unequal cash inflows (Learning Objective 2) E 12-20A Refer to the Robinson Hardware information in E12-19A. Compute the ARR for the investment. E12-21A Compute and compare ARR (Learning Objective 2) Star Golf Products is considering whether to upgrade its equipment. Managers are con- sidering two options. Equipment manufactured by Heatherwood Inc. costs $900,000 and will last six years and have no residual value. The Heatherwood equipment will generate annual operating income of $153,000. Equipment manufactured by Riverland Limited costs $1,350,000 and will remain useful for seven years. It promises annual operating in- come of $249,750, and its expected residual value is $100,000. Which equipment offers the higher ARR