The amount of the average investment for a proposed investment of $186,000 in a fixed asset with a useful life of 4 years, straight-line depreciation, no residual value, and an expected total income of $25,100 for the 4 years is

a. $46,500

b. $93,000

c. $25,100

d. $6,275

2.

Hayden Company is considering the acquisition of a machine that costs $466,000. The machine is expected to have a useful life of 6 years, a negligible residual value, an annual net cash inflow of $87,000, and annual operating income of $73,950. The estimated cash payback period for the machine is (round to one decimal place)

a. 7.5 years

b. 5.4 years

c. 6.3 years

d. 1.2 years