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Hardware is adding a new product line that will require an investment of

$ $1$ comma $470$ comma $000$$$1,470,000.$

Managers estimate that this investment will have a$10-$year life and generate net cash inflows of

$ $305$ comma $000$$$305,000$

the first$$ year,

$ $260$ comma $000$$$260,000$

the second$$ year, and

$ $215$ comma $000$$$215,000$

each year thereafter for eight years. The investment has no residual value. Compute the payback period.

Question content area bottom

Part $1$

First enter the$$ formula, then calculate the payback period. $($Round your answer to two decimal$$ places.$)$

Part $2$

Full years

$+($

Amount to complete recovery in next year

$$

Projected cash inflow in next year

$)=$

Payback

$$

$+($

$$

$$

$$215,000$

$)=$

years