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A piece of equipment costs 30,000 and is expected to generate 9,500 of annual cash revenues and 1,000 of annual cash expenses. The disposal value

  1. A piece of equipment costs 30,000 and is expected to generate 9,500 of annual cash revenues and 1,000 of annual cash expenses. The disposal value at the end of the estimated 10-year life is 3,000. Ignoring income taxes, the payback period is:
    1. 6.98 years
    2. 3.53 years
    3. 3.86 years
    4. 4.29 years
    5. Some other period of time not noted

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