Basso Company is considering the purchase of a new equipment for $400,000. The equipment has no residual value and net cash inflows for four years are: Year 1 Year 2 Year 3 Year 4 $100,000 150,000 100,000 200,000 What is the cash payback period for the investment? a. 3 years. b. 2 years. c. 2.75 years. d. 3.25 years. QUESTION 25 Sable Company is considering the purchase of a new equipment for $500,000. The equipment has no residual value and net cash inflows for four years are: Year 1 Year 2 Year 3 Year 4 $100,000 150,000 200,000 200,000 Sable Company's discount rate is 8%. Interest (discount factors) of present value of $1 for years 1 through 4 are 0.926, 0.857, 0.794 and 0.735 respectively. What is the net present value for this equipment? a. $40,200. b. $126,950. c. $26,950. d. $90,200