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Part $1$

RobertsonRobertson

Hardware is adding a new product line that will require an investment of

$ $1$ comma $346$ comma $000$$$1,346,000.$

Managers estimate that this investment will have a$10-$year life and generate net cash inflows of

$ $280$ comma $000$$$280,000$

the first$$year$,$

$ $260$ comma $000$$$260,000$

the second$$year$,$ and

$ $240$ comma $000$$$240,000$

each year thereafter for $8$ years. Assume the project has no residual value. Compute the ARR for the investment. Round to two places.

$ $330$ comma $000$$$330,000$

the first$$year$,$

$ $230$ comma $000$$$230,000$

the second$$year$,$ and

$ $210$ comma $000$$$210,000$

each year thereafter for $8$ years. Compute the payback period. Round to one decimal place.

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Part $1$

Payback in years $=$