QUESTION 5 A company is considering purchasing a machine that costs $320,000 and is estimated to have no salvage value at the end of its 8-year useful life. If the machine is purchased, annual revenues are expected to be $100,000 and annual operating expenses exclusive of depreciation expense are expected to be $38,000. The straight-line method of depreciation would be used. The cash payback period on the machine is 8.0 years 7.3 years. 5.2 years 2.6 years QUESTION 6 Brady Corp. is considering the purchase of a piece of equipment that costs $23,000. Projected net annual cash flows over the project's life are: Year 1 Net Annual Cash Flow $ 3,000 2 3 4. 8,000 15,000 9,000 The cash payback period is 2.63 years 2.80 years 220 years 2.37 years