Assume that $$12,000$ is spent for a machine with an estimated useful life oif $8$ years.

Net cash flows expected firom operations are: $Y^{\text{'}}1=$$$4,000$;$Y_{r}2=$$$3,000$ :

Years $3-8=$$$2,000$ each.

What is the payback period

$P=$# of years of inflows to cover initial investment