Hayden company is considering the acquisition of a machine that costs $675,000. the machine is expected to have a useful life of 6 years, a negligible residual value, an annual net cash inflow of $150,000, and annual operating income of $87,500. the estimated cash payback period for the machine is
a. 4 years
b. 4.5 years
c. 5 years
d. 3.5 years

Tri fecta, a partnership, had revenues of $369,000 in its first year of operations. the partnership has not collected on $45,000 of its sales and still owes $39,500 on $155,000 of merchandise it purchased. there was no inventory on hand at the end of the year. the partnership paid $27,000 in salaries. the partners invested $48,000 in the business and $23,000 was borrowed on a five-year note. the partnership paid $2,070 in interest that was the amount owed for the year and paid $9,500 for a two-year insurance policy on the first day of business. compute net income for the first year for tri fecta.