You are given the following information for MAYAR manufacturing company that considers investment in a new production line: Investment in the new production line $1,100,000 Useful life 12 years Estimated annual net cash inflows for first year $400,000 Estimated annual net cash inflows for second year $390,000 Estimated annual net cash inflows for next ten years $380,000 Residual value $70,000 Depreciation method Straight-line Required rate of return 14% Calculate the payback period for the investment. (Round your answer to two decimal places.)

Youaregiventhe followinginformation for M AY ARmanufacturingcompanythatconsider sinvestmentinanew productionline: Investmentinthenewproductionline1,100,000 Useful life 12 years Estimated annual net cash inflows for first year 400,000 Estimatedannualnetcashin flows forsecondyear 390,000 Estimated annual net cash inflows for next ten years 380,000 Residualvalue70,000 Depreciation method Straight-line Required rate of return 14