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A company is considering the purchase of a new piece of equipment for $98,000. It is expected to produce the following net cash flows.

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A company is considering the purchase of a new piece of equipment for $98,000. It is expected to produce the following net cash flows. The payback period is: Year 1 Net cash flows $ 40,000 Year 2 $ 34,000 Year 3 $ 22,000 Year 4 Year 5 $16,000 $ 10,000 Multiple Choice 2.45 years. 4.13 years 3.13 years 2.88 years

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