Vandezande inc. is considering the acquisition of a new machine that costs $467,000 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 (ignore income taxes.): incremental net operating income incremental net cash flows year 1 $ 75,000 $ 152,000 year 2 $ 81,000 $ 160,000 year 3 $ 92,000 $ 175,000 year 4 $ 55,000 $ 157,000 year 5 $ 97,000 $ 159,000 assume cash flows occur uniformly throughout a year except for the initial investment. the payback period of this investment is closest to:

payback 2.8857 years

Explanation:

The payback period is the time in years at which the project recovers their original cost:

the investment is for 467,000

we will add the cash flow of the project until this value

Year 1  :    152,000

Year 2 :    160,000   accumulated 312,000

Year 3 :    175,000   accumulated 487,000

During third year the company achieved payment.

We will calculate at which point of the third year we accumulate 467,000 cash flow assuming a linear earninig during the year

467,000 - 312,000 = 155,000

175,000 for a complete year

155,000 X

155,000/175,000 = 0.8857

2 complete years + 0.8857 of the third year:

2.8857 payback period

b. a single paragraph.

a paragraph is a series of sentences that are organized and make sense, and are all related to a single topic . almost every piece of writing you do that is longer than a few sentences should be organized into paragraphs. this is because paragraphs show a reader where the subdivisions of an essay begin and end, and thus the reader see the organization of the essay into subjects in order to be able to understand its main points.

answer; risk transference;