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A company is considering the purchase of a new piece of equipment for $118,000. It is expected to produce the following net cash flows. The

A company is considering the purchase of a new piece of equipment for $118,000. It is expected to produce the following net cash flows. The payback period is: Year 1 Net cash flows $ 46,000 Year 2 $ 40,000 Year 3 $ 28,000 Year 4 $ 22,000 Year 5 $ 16,000 Multiple Choice 2.34 years. 2.95 years. 4.18 years. 3.18 years. 2.57 years

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