Birch manufacturing is considering the addition of another product line to its offerings.Equipment needed to produce the new line will cost $200,000.Birch estimates that the net annual cash inflows from the new product line will be as follows: 
Required:
a.What is the payback period for the new product line?
b.If the company can establish a steady customer base before production starts and the cash inflows will be $15,000 per year for years 1 - 15, with years 16 through 20 remaining at $2,000 annually, what will be the payback period?
Definitions:
Peripheral Nervous System
The part of the nervous system that consists of nerves and ganglia outside of the brain and spinal cord, responsible for connecting the central nervous system (CNS) to limbs and organs.
Central Nervous System
The complex of nerve tissues that controls the activities of the body, comprising the brain and spinal cord.
Endocrine System
A network of glands in the body that secretes hormones directly into the bloodstream, regulating various bodily functions.
Hippocampus
A region of the brain that is associated with memory formation, spatial navigation, and emotional regulation.
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