An initial $400,000 investment in new production equipment will yield annual positive cash flows of $150,000 in year 1. Annual cash flows will decrease by $25,000 each year thereafter. The new...

An initial $400,000 investment in new production equipment will yield annual positive cash flows of $150,000 in year 1. Annual cash flows will decrease by $25,000 each year thereafter. The new equipment has a useful life of 7 years. MARR is 10% per year. Determine the DPBP of this project.