Crea Company Is Considering Buying a Machine for $54000 with an Estimated

Multiple Choice

Crea Company is considering buying a machine for $54000 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 $6000 each year. The cash payback on this investment is

A) 15 years.
B) 10 years.
C) 9 years.
D) 4.5 years.