(Ignore income taxes in this problem.) Baldock Inc. is considering the acquisition of a new machine that costs $373,000 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:

Assume cash flows occur uniformly throughout a year except for the initial investment.

The payback period of this investment is closest to:

5.0 years

3.7 years

4.7 years

2.3 years

(Ignore income taxes in this problem) Baldock Inc. is considering the acquisition of a new machine that costs $373,000 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: Incremental Net Incremental Net Operating Income Cash Flows $80,000 Year 1 $157,000 Year 2 $86,000 $165,000 $97,000 $175,000 Year 3 Year 4 $60,000 $162,000 $102,000 $164,000 Year 5 Assume cash flows occur uniformly throughout a year except for the initia nvestment. The payback period of this investment is closest to: O 5.0 years O 37 years O 4.7 years O 2.3 years