Brief Exercise $12-27$ Payback Period

Objective $2$ Example $12\mathrm{.}1$

Lee Advertising, Inc. is considering an investment in a new information system. The new system requires an investment of $$2,520,000$ and either has $($a$)$ even cash flows of $$1,050,000$ per year or $($b$)$ the following expected annual cash flows: $$630,000,$$$315,000,$ $$819,000,$$$840,000,$ and $$210,000.$

Required:

Calculate the payback period for each case.