the management of arnold corporation is considering the purchase of a new machine costing $400,000. the company's desired rate of return is 10%. the present value factors for $1 at compound interest of 10% for 1 through 5 years are 0.909, 0.826, 0.751, 0.683, and 0.621, respectively. in addition to the foregoing information, use the following data in determining the acceptability in this situation:
Year Income From Operations Net Cash Flow
1) $100,000 180,000
2) 40,000 120,000
3) 20,000 100,000
4) 10,000 90,000
5) 10,000 90,000
The cash payback period for this investment is:
a) 4 years
b) 3 years
c) 2 years
d) 5 years