Baldock Inc. is considering the acquisition of a new machine that costs $420,000 and has a useful life of 5 years with no salvage value. The incremental net operating income and incremental net cash flows that would be produced by the machine are:

(Ignore income taxes in this problem.) Baldock Inc. is considering the acquisition of a new machine that costs $420,000 and has a useful life of 5 years with no salvage value. The incremental net operating income and incremental net cash flows that would be produced by the machine are: Year 1 Year 2 Year 3 Year 4 Year 5 Incremental Net Operating Income $61,000 $67,000 $78,000 $41,000 $83,000 Incremental Net Cash Flows $145,000 $151,000 $162,000 $125,000 $167,000 Assume cash flows occur uniformly throughout a year except for the initial investment. The payback period of this investment is closest to O 3.2 years O 2.8 years O 5.0 years O 1.9 years