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Shelley Company will pay $100,000 for a machine that will generate the following cash flows: YEAR CASH FLOW 1 $10,000 2 $10,000 3 $10,000 4

Shelley Company will pay $100,000 for a machine that will generate the following cash flows:

YEAR

CASH FLOW

1

$10,000

2

$10,000

3

$10,000

4

$10,000

5

$10,000

6

$20,000

7

$40,000

8

$30,000

The payback period for the investment is:

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