Use the following to answer questions 4-5:

(Ignore income taxes in this problem.) Vandezande Inc. is considering the acquisition of a new machine that costs $370,000 and has a useful life of 5 years with no salvage value. The incremental net operating income and incremental net cash flows that would be produced by the machine are:

Incremental net operating income

Incremental net cash flows

Year 1.....

$54,000

$128,000

Year 2.....

$31,000

$105,000

Year 3.....

$52,000

$126,000

Year 4.....

$49,000

$123,000

Year 5.....

$48,000

$122,000

4.If the discount rate is 10%, the net present value of the investment is closest to:

A)$370,000

B)$457,479

C)$234,000

D)$87,479

5.The payback period of this investment, rounded off to the nearest tenth of a year, is closest to:

A)2.9 years

B)4.9 years

C)3.1 years

D)5.0 years

How do you get to these answers?