Mini$-$Exercise $\backslash (16-7\backslash )($Static$)$ Net present ratio and IRR LO $16-7$

Lakeside Incorporated is considering replacing old production equipment with state$-$of$-$the$-$art technology that will allow production cost savings of $\backslash (\backslash$$ $7,500\backslash )$ per month. The new equipment will have a five$-$year life and cost $\backslash (\backslash$$ $320,000\backslash ),$ with an estimated salvage value of $\backslash (\backslash$$ $20,000\backslash ).$ Lakeside's cost of capital is $\backslash (12\backslash \%\backslash ).$ Table $6-4$ and Table $6-5.$

Required:

Calculate the present value ratio of the new production equipment.

Note: Use appropriate factor$($s$)$ from the tables provided. Round the PV factors to $\backslash (\backslash$mathbf$\{4\}\backslash )$ decimals. Round your answer to $2$ decimal places.

Present value ratio