Please just provide the answers that go in the yellow boxes :) Compute the payba

Question

Please just provide the answers that go in the yellow boxes :)

Compute the payback period for each of these two separate investments: A new operating system for an existing machine is expected to cost S240.000 and have a useful life of five years. The system yields an incremental after-tax income of $69,230 each year after deducting its straight-line depreciation. The predicted salvage value of the system is S9.000. A machine costs $200,000. has a $13,000 salvage value, is expected to last seven years, and will generate an after-tax income of $38,000 per year after straight-line depreciation.

Explanation / Answer

A. 240000/69230

B. 200000/38000

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