The management of River Corporation is considering the purchase of a new machine costing $380,000. The company's desired rate of return is 6%. The present value factor for an annuity of $1 at interest of 6% for 5 years is 4.212. In additior to the foregoing information, use the following data in determining the acceptability of this investment: Year 12345 Income from Operations $20,000 20,000 20,000 20,000 20,000 Net Cash Flow $95,000 95,000 95,000 95,000 95,000 6. The cash payback period for this investment is a. 4 years b. 5 years c. 20 years d. 3 years

The management of River Corporation is considering the purchase of a new machine costing $380,000. The company's desired rate of return is 6%. The present value factor for an annuity of $1 at interest of 6% for 5 years is 4.212 . In addition to the forcgoing information, use the following data in determining the acceptability of this investment: 6. The cash payback period for this investment is a. 4 years b. 5 years c. 20 years d. 3 years