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Question 36 (2.5 points) Fast Food, Inc., has purchased a new donut maker. It cost...

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Question 36 (2.5 points) Fast Food, Inc., has purchased a new donut maker. It cost $16,000 and has an estimated life of 10 years. The following annual donut sales and expenses are projected (Ignore income taxes.): $22,000 Sales Expenses: Flour, etc., required in making donuts Salaries Depreciation Net operating income $10,000 $ 6,000 $ 1,600 17,600 $ 4,400 8 Assume cash flows occur uniformly throughout a year except for the initial investment. Assume cash flows occur uniformly throughout a year except for the initial investment. The payback period on the new machine is closest to: 5 years 2.7 years 3.6 years 1.4 years

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