Return to question 1 Compute the payback period for each of these two separate investments ints sh o. A new operating system for an existing machine is expected to cost $280,000 and have a useful life of six years. The system yields an incremental after-tax income of $80,769 each year after deducting its straight line depreciation. The predicted salvage value of the system is $11,000 b. A machine costs $170,000, has a $15,000 salvage value, is expected to last seven years, and will generate an after-tax income of $44,000 per year after straightline depreciation E Answer is complete but not entirely correct. Payback Period Choose Numerator: Choose Denominator: Cost of investment Annual net cash flow - S 280,000 $ 134,569 = IS 170,000 / IS 59,500 = Payback Period Payback period 2.08 years 2.86 years a b >