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Capital Budgeting Drill #6 A company is considering purchasing a repair machine. The company uses the straight line method of depreciation. The following information

Capital Budgeting Drill #6 A company is considering purchasing a repair machine. The company uses the straight line method of depreciation. The following information was collected. Initial Cost Useful Life Salvage Value $350,000 5 years None Est. Net Income Year 1 Est. Net Income Year 2 Est. Net Income Year 3 $153,000 Est. Net Income Year 4 $75,000 $102,000 $12,000 Est. Net Income Year 5 $6,000 What is the cash payback period of this investment? 490

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