WHAT IS THE PAYBACK PERIOD OF THIS INVESTMENT

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 Incremental Net Operating Incremental Income Net Cash Flows $ 64,000 $149,000 $70,000 $150,000 $81,000 $ 178,000 $ 44,000 $ 146,000 $86,000 $ 148,000 Year 3 Year 4 Year 5 Assume cash flows occur uniformly throughout a year except for the initial investment