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A machine with an initial cost of $200,000 has the following net cash inflows over an eight-year life: Year Net Cash Flow ($) 1 20,000
A machine with an initial cost of $200,000 has the following net cash inflows over an eight-year life:
| Year | Net Cash Flow ($) |
| 1 | 20,000 |
| 2 | 25,000 |
| 3 | 35,000 |
| 4 | 40,000 |
| 5 | 46,000 |
| 6 | 34,000 |
| 7 | 28,000 |
| 8 | 20,000 |
Calculate the cash payback period for this investment.
a.4 years
b.8 years
c.6 years
d.3 years
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