Question: Jack's Coffee shop is considering purchasing a new coffee machine for the upcoming year. The new machine has a cost of $125,060 and a useful

Jack's Coffee shop is considering purchasing a new coffee machine for the upcoming year. The new machine has a cost of $125,060 and a useful life of 4 years with $7,000 of residual value. The expected cash flows for the next 4 years are: Year 1 $ 52,005 Year 2 $ 54,015 Year 3 $ 56,000 Year 4 $ 58,050 Determine the payback period of the investment: A. 2.23 years B.2.34 years O C. 1.30 years D. 3.64 years

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