The following details are provided by a manufacturingcompany:
|
Product line |
|
$1,030,000 |
| Useful life1 |
5 years |
| Estimated annual net cash inflows for first year |
$420,000 |
| Estimated annual net cash inflows for second year |
$370,000 |
| Estimated annual net cash inflows for next ten years |
$310,000 |
| Residual value |
$70,000 |
| Depreciation method |
Straight-line |
| Required rate of return |
12% |
Calculate the payback period for the investment.(Round your answer to two decimalplaces.)