Exercise 11-5 Payback period computation; even cash flows LO P1 Compute the payback period for each of these two separate investments a. A new operating system for an existing machine is expected to cost $270,000 and have a useful life of six years. The system yields an incremental after-tax income of $77,884 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $10,000. b. A machine costs $200,000, has a $14,000 salvage value, is expected to last seven years, and will generate an after-tax income of $43,000 per year after straight-line depreciation. Pa Choose Numerator: Choose Denominator: Payback Payback period Exercise 11-5 Payback period computation; even cash flows LO P1 Compute the payback period for each of these two separate investments: a. A new operating system for an existing machine is expected to cost $270,000 and have a useful life of six years. The system yields incremental after-tax income of $77.884 each year after deducting its straight-line depreciation. The predicted salvage value of an i the system is $10,000. b. A machine costs $200,000, has a $14,000 salvage value, is expected to last seven years, and will generate an after-tax income of $43,000 per year after straight-line depreciation. Answer is complete but not entirely correct. Payback Period Choose Payback Period Choose Numerator: Payback periood Annual net cash Cost of investment flow 21,2172.23 years 270,000s 80,000S 66,714 2.70years b