Multiple Choice Question 150 A company is considering purchasing factory equipment that costs $552000 and is estimated to have no salvage value at the end of its 8-year useful life. If the equipment is purchased, annual revenues are expected to be $130000 and annual operating expenses exclusive of depreciation expense are expected to be $34000. The straight-line method of depreciation would be used. The cash payback period on the equipment is 5.8 years. 8.0 years. 20.4 years. 2.9 years.