A company is considering purchasing factory equipment that costs $320,000 and is estimated to have a $20,000 salvage value at the end of its 6-year useful life. If the equipment is purchased, annual revenues are expected to be $90,000 and annual operating expenses including depreciation expense are expected to be $78,000. The straight-line method of depreciation would be used. The cash payback period (rounded) on the equipment is T

he cash payback period (rounded) on the equipment is 6.40 years 5.16 years 3.55 years 4.83 years