Oasis Corp is considering the purchase of a new piece of equipment, which would have an initial cost of $1,000,000 and a 5 year life. There is no salvage value for the equipment. The increase in net operating income each year of the equipment's life would be as follows: Year 1 $375,000 Year 2 $350,000 Year 3 $285,000 Year 4 $230,000 Year 5 $185,000 What is the payback period? O 3.51 years 2.96 years Buxton Corporation is evaluating a capital investment project which would require an initial investment of $240,000 to purchase new machinery. The annual revenues and expenses generated specifically by this project each year during the project's nine year life would be: Sales $185,000 Variable expenses $ 38,000 Contribution margin $147,000 Fixed expenses: Salaries expense $ 31,000 Rent expense $ 24,000 Depreciation expense $ 25,000 Total fixed expenses $ 80,000 Operating income $ 67,000