(12) I 17. A hospital is trying to determine the payback period for a piece of X-Ray equipment it is purchasing. The assumptions are: Purchase price of equipment $400,000. Useful life of the equipment 10 years. Revenue the machine will generate per year $10,000. Direct operating costs associated with earning revenue = $75,000 Depreciation expense per year = $15,000. a. Find the machine's expected net income b. Find the annual cash inflow the machine is expected to generate c. Compute the payback period