Project A requires a $280,000 initial investment for new machinery with a five-year life and a salvage value of $30,000. The company uses straight-line depreciation. Project A is expected to yield...

Project A requires a $280,000 initial investment for new machinery with a five-year life and a salvage

value of $30,000. The company uses straight-line depreciation. Project A is expected to yield annual net

income of $20,000 per year for the next five years. Compute Project A’s payback period.