Zed Corporation Is Evaluating the Purchase of a Machine That

Multiple Choice

Zed Corporation is evaluating the purchase of a machine that costs $275,000.The annual cash revenues from the machine would be $50,000, and the annual cash expenses of the machine would be $10,000.What is the estimated cash payback period for the machine?

A) 8.5 years
B) 3.8 years
C) 6.9 years
D) 5.2 years