Harvey Co. is evaluating a capital investment proposal for a new machine. The investment proposal shows the following information:\ Initial cost

$500,000

\ Life 10 years\ Annual net cash inflows

$200,000

\ Salvage value

$100,000

\ If acquired, the machine will be depreciated using the straight-line method. The payback period for this investment is\ 3.25 years.\ 2.67 years.\ 2.5 years.\ 2 years.

Harvey Co. is evaluating a capital investment proposal for a new machine. The investment proposal shows the following information: Initial cost $500,000 Life 10 years Annual net cash inflows $200,000 Salvage value $100,000 If acquired, the machine will be depreciated using the straight-line method. The payback period for this investment is 3.25 years. 2.67 years. 2.5 years