Exercise 25.5 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 $300,000 and have a useful life of six years. The system ylelds an Incremental after-tax Income of $86.538 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $12,000. b. A machine costs $190.000, has a $16.000 salvage value, is expected to last ten years, and will generate an after-tax Income of $47.000 per year after straight-line depreciation. Payback Period Choose Numerator: 1 Choose Denominator: = = Payback Period Payback period