Question: EE printing is in the evaluation process for the acquisition of a new computer system. The total depreciable base (cost plus installation) is $170,000. The

EE printing is in the evaluation process for the acquisition of

EE printing is in the evaluation process for the acquisition of a new computer system. The total depreciable base (cost plus installation) is $170,000. The new equipment will increase Earnings before depreciation and taxes by $67,400 during years 1 to 3 and $30,000 during years 4 to 6 . EE marginal tax rate is 40% and Cost of Capital is 11% Calculate the Payback Period PRESENT YOUR ANSWER ROUNDED TO 0 DECIMAL PLACES

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