Years Revenue Operating Costs Depreciation EBT Tax EAT NCF

Q$19$ Equipment $($New$)$ $$500,0000-$$$800,000$

Equipment $($Install$)$ $$200,0001$ $$600,000$ $$310,000$ $$87,500$ $$202,500$ $$81,000$ $$121,500$ $$209,000$

Working Capital $$100,0002$ $$600,000$ $$310,000$ $$87,500$ $$202,500$ $$81,000$ $$121,500$ $$209,000$

NINV $$800,0003$ $$600,000$ $$310,000$ $$87,500$ $$202,500$ $$81,000$ $$121,500$ $$209,000$

$4$ $$800,000$ $$400,000$ $$87,500$ $$312,500$ $$125,000$ $$187,500$ $$275,000$

Depreciation $$700,0005$ $$800,000$ $$400,000$ $$87,500$ $$312,500$ $$125,000$ $$187,500$ $$275,000$

Yearly Depreciation $$87,5006$ $$800,000$ $$400,000$ $$87,500$ $$312,500$ $$125,000$ $$187,500$ $$275,000$

$7$ $$800,000$ $$400,000$ $$87,500$ $$312,500$ $$125,000$ $$187,500$ $$275,000$

Tax Rate $40\%8$ $$800,000$ $$400,000$ $$87,500$ $$312,500$ $$125,000$ $$187,500$ $$405,000$

Required Rate of Return $20\%*$In year $8$ add $$100,000$ of working capital & $$50,000$ for market value of equipment minus tax rate at $40\%$ What is the payback period?