Hayden Company Is Considering the Acquisition of a Machine That

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) 3.5 years
B) 4 years
C) 4.5 years
D) 5 years