e26 19 using payback to make capital investment decisions robinson hardware is addin 640650

E26 19. Using payback to make capital investment decisions. Robinson Hardware is adding a new product line that will require an investment of $1,454,000. Managers estimate that this investment will have a 10 year life and generate net cash inflows of $300,000 the first year, $270,000 the second year, and $260,000 each year thereafter for eight years. Compute the payback period.E26 20. Using ARR to make capital investment decisions. Refer to the Robinson Hardware information in Exercise E26 19. Assume the project has no residual value. Compute the ARR for the investment. Round to two places.