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22-38 Payback methods, even and uneven cash flows. Bobwhite Laundromat is trying to enhance the services it provides to customers, mostly college students. It is looking into the purchase of new high- efficiency washing machines that will allow for the laundry's status to be checked via smartphone. Bobwhite estimates the cost of the new equipment at $178,000. The equipment has a useful life of 9 years. Bobwhite expects cash fixed costs of $87,000 per year to operate the new machines, as well as cash variable costs in the amount of 10% of revenues. Bobwhite evaluates investments using a cost of capital of 6%. 1. Calculate the payback period and the discounted payback period for this investment, assuming Bobwhite expects to generate $190,000 in incremental revenues every year from the new machines. 2. Assume instead that Bobwhite expects the following uneven stream of incremental cash revenues from installing the new washing machines: Insert Formulas Data Review View A Page Layout B 1 C F G H I J D 3 E 4 1 Year 2 5 6 7 8 9 2 Projected Revenue $85,000 $130,000 $140,000 $170,000 $180,000 $170,000 $140,000 $150,000 $185,000 Based on this estimated revenue stream, what are the payback and discounted payback periods for the investment? Required Home