(Solved): A company is considering purchasing a machine that costs $420000 and is estimated to have no salva ...

A company is considering purchasing a machine that costs $$\$420000$$ 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 $$\$160000$$ and annual operating expenses exclusive of depreciation expense are expected to be $$\$28000$$. The straight-line method of depreciation would be used. The cash payback period on the machine is $$3.2$$ years. $$8.0$$ years. $$2.0$$ years. $$4.2$$ years.