Question - Crea Company is considering buying a machine for $58,000 with an estimated life of ten years and no salvage value. The straight-line method of depreciation will be used. The machine is expected to generate cash inflow of $8,000 and net income of $13,800 each year. The cash payback on this investment is
a. 3years.
b. 2years.
c. 4years.
d. 7years.