Refer to the Robinson Hardware information in Exercise E26- 19. Assume the project has no residual value. Compute the ARR for the investment. Round to two places.

Data from Exercise E26-19

Robinson Hardware is adding a new product line that will require an investment of $1,454,000. Managers estimate that this investment will have a 10-year life and generate net cash inflows of $300,000 the first year, $270,000 the second year, and $260,000 each year thereafter for eight years. Compute the payback period.