1. Heidi Company is considering the acquisition of a machine that costs $332,000. The machine is expected to have a useful life of 6 years, a negligible residual value, an annual net cash flow of $110,000, and annual operating income of $82,823. What is the estimated cash payback period for the machine (round to one decimal point)?

a.4.0 years

b.4.0 years

c.3.0 years

d.4.5 years