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Vandezande Inc. is considering the acquisition of a new machine that costs $423,000 and has a useful life of 5 years with no salvage value.
Vandezande Inc. is considering the acquisition of a new machine that costs $423,000 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 Year 4 Incremental Net Incremental Operating Net Cash Income Flows $64,000 $149,000 $70,000 $150,000 $81,000 $178,000 $44,000 $146,000 $86,000 $148,000 Year 5 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 4.3 years O 5.0 years O 2.1 years O 2.7 years
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