Gateway Graphics is considering an investment in new printing equipment costing $534,000. The equipment will...
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Accounting
Gateway Graphics is considering an investment in new printing equipment costing
$534,000.
The equipment will be depreciated on a
straightline
basis over a
fiveyear
life and is expected to generate net cash inflows of
$120,000
the first year,
$158,000
the second year, and
$166,000
every year thereafter until the fifth year. What is the payback period for this investment? The residual value is zero. (Round your answer to two decimal places.)
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