15) Vandezande Inc. is considering the acquisition of a new machine that costs $370,000 and has a useful life of 5 years with no salvage value. The incremental net operating income and incremental net cash flows that would be produced by the machine are (Ignore income taxes.):

	Incremental Net Operating Income			Incremental Net Cash Flows
Year 1	$	54,000		$	128,000
Year 2	$	31,000		$	105,000
Year 3	$	52,000		$	126,000
Year 4	$	49,000		$	123,000
Year 5	$	48,000		$	122,000

Assume cash flows occur uniformly throughout a year except for the initial investment.

The payback period of this investment is closest to:

Multiple Choice

• 2.9 years

• 3.1 years

• 5.0 years

• 4.9 years