Required information Use the following information for the Quick Study below. (The following information applies to the questions displayed below.] Project A requires a $360,000 initial investment for new machinery with a five- year life and a salvage value of $47,000. The company uses straight-line depreciation. Project A is expected to yield annual net income of $27,700 per year for the next five years. QS 24-5 Payback period LO P1 Compute Project A's payback period. Payback Period Choose Numerator: 7 Choose Denominator: Payback Period = Payback period 0 Payback I Choose Numerator: Accounts receivable Annual net cash flow Average total assets Cost of goods sold Payback Peric Ch Choose Numerator: Cost of investment Current assets Current liabilities Income before interest and inc tax Net income ack Period 1 Choose Denominator: = Payback Period = Payback period Annual net cash flow Average accounts receivable, net Average total assets Cost of goods sold Cost of investment C ont not back Period Choose Denominator: Payback Period Payback period Cost of investment Current assets Current liabilities Interest expense Net sales