Nest and Co. is considering the acquisition of a new machine…

Questions

Nest аnd Cо. is cоnsidering the аcquisitiоn of а new machine that costs $355,000 and has a useful life of 5 years with no salvage value. The incremental net operating income and incremental net cash flows that the machine would produce are (Ignore income taxes.):   Incremental Net Operating Income Incremental Net Cash Flows Year 1 $ 62,000 $ 148,000 Year 2 $ 68,000 $ 154,000 Year 3 $ 79,000 $ 165,000 Year 4 $ 42,000 $ 128,000 Year 5 $ 84,000 $ 170,000 Assume cash flows occur uniformly throughout a year except for the initial investment. The payback period of this investment is closest to: