Nakamichi Bancorp has made an investment in banking soft ware at a cost of $1,875,000. Management expects

Question:

Nakamichi Bancorp has made an investment in banking soft ware at a cost of $1,875,000. Management expects productivity gains and cost savings over the next several years. If, as a result of this investment, the firm is expected to generate additional cash flows of $586,212, $713,277, $431,199, and $318,697 over the next four years, what is the investment’s payback period?