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Required information

EX $16-35($Algo$)$ Payback Period; Even Cash Flows $($Section $3)($LO $16-1,16-6,16-8)$

$[$The following information applies to the questions displayed below.$]$

The management of Niagara National Bank is considering an investment in automatic teller machines. The machines

would cost $$160,800$ and have a useful life of seven years. The bank's controller has estimated that the automatic teller

machines will save the bank $$33,500$ after taxes during each year of their life $($including the depreciation tax shield$).$ The

machines will have no salvage value.

Use Appendix A for your reference.

Note: Use appropriate factor$($s$)$ from the tables provided.

EX $16-35($Algo$)$ Part $1$ Compute the payback period for the proposed investment.

Required:

Compute the payback period for the proposed investment.

Note: Round your answer to $1$ decimal place.