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A company is considering purchasing factory equipment that costs $311000 and is estimated to have no salvage value at the end of its 4.4-year useful

image text in transcribed A company is considering purchasing factory equipment that costs $311000 and is estimated to have no salvage value at the end of its 4.4-year useful life. If the equipment is purchased, annual revenues are expected to be $150000 and annual operating expenses exclusive of depreciation expense are expected to be $25600. The straight-line method of depreciation would be used. The cash payback period on the equipment is 2.07 years. 2.5 years. 4.4 years. 5.18 years

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