an anticipated purchase of equipment for $520,000, with a useful life of 8 years and no residual value, is expected to yield the following annual incomes and net cash flows: year income net cash flow 1 $60,000 $120,000 2 50,000 110,000 3 50,000 110,000 4 40,000 100,000 5 40,000 80,000 6 40,000 80,000 7 40,000 60,000 8 40,000 60,000 the cash payback period for this equipment is
