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Vandezande Inc. is considering the acquisition of a new machine that costs $467,000 and has a useful life of 5 years with no salvage value.
Vandezande Inc. is considering the acquisition of a new machine that costs $467,000 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 (Ignore income taxes.): Year 1 Year 2 Year 3 Year 4 Year 5 Incremental Net Operating Incremental Income Net Cash Flows $75,000 $152,000 $81,000 $160,000 $92,000 $175,000 $55,000 $157,000 $97,000 $159,000 Assume cash flows occur uniformly throughout a year except for the initial investment. The payback period of this investment is closest to: (Round your answer to 1 decimal place.) Multiple Choice O 4.1 years O 2.9 years 20 years O O 5.0 years
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