MC.10-092

MC.11-066

MC.11-074

MC.11-079

MC.11-095

MC.11-111

MC.11-112.ALGO

MC.11-126

EX.07-02.ALGO

BE.08-01.ALGO

EX.09-02.ALGO

BE.11.03.ALGO

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An anticipated purchase of equipment for $490,000 with a useful life of 8 years and no residual value is expected to yield the following annual net incomes and net cash flows:

Year	Net Income		Net Cash Flow
1	$60,000		$110,000
2	50,000		100,000
3	50,000		100,000
4	40,000		90,000
5	40,000		90,000
6	40,000		90,000
7	40,000		90,000
8	40,000		90,000

What is the cash payback period?

a.5 years

b.4 years

c.6 years

d.3 years