A company is considering purchasing factory equipment that costs $432000 and is estimated to have no salvage value at the end of its 8-year useful life. If the equipment is purchased, annual revenues are expected to be $135000 and annual operating expenses exclusive of depreciation expense are expected to be $39000. The straight-line method of depreciation would be used. The cash payback period on the equipment is 10.3 years. 8.0 years. 4.5 years. 2.3 years. Concord Corp. is considering the purchase of a piece of equipment that costs $20000. Projected net annual cash flows over the project's life are: Year Net Annual Cash Flow $6000 2 10000 3 10000 4 7000 The cash payback period is 2.40 years. 2.55 years. 2.50 years. 1.95 years. Most of the capital budgeting methods use accrual accounting numbers. net income. accrual accounting revenues. cash flow numbers. Which of the following is not a typical cash flow related to equipment purchase and replacement decisions? O Overhaul of equipment. Salvage value of equipment when project is complete. Depreciation expense. Increased operating costs