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The machine is expected to generate cash inflow of 8000 and

Question - Crea Company is considering buying a machine for $58,000 with an estimated life of ten years and no salvage value. The straight-line method of depreciation will be used. The machine is expected to generate cash inflow of $8,000 and net income of $13,800 each year. The cash payback on this investment is

a. 3years.

b. 2years.

c. 4years.

d. 7years.

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Accounting Basics: The machine is expected to generate cash inflow of 8000 and

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Accounting Basics: The machine is expected to generate cash inflow of 8000 and

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