Ragged Edge Arts is considering replacing its long-arm sewing machine. The new long-arm machine costs $150,000 . The expected life of the machine is expected to be 5 years, the residual value will be negligible, and the machine will generate an annual cash flow of $50,000 and annual operating income of $45,000 . What is the estimated cash payback period for the machine?
a. 4 years
b. 3 years
c. 1 year
d. 2 years
b
Business
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