If for the machine in Example 5.1 expected gross incomes and operating costs are as follows, what is the payback period?
Year | Gross Income | Total Operating Cost |
1 | $3,500 | $1,100 |
2 | $3,350 | $1,200 |
3 | $3,600 | $1,250 |
4 | $3,200 | $1,300 |
5 | $3,450 | $1,400 |
6 | $3,400 | $1,500 |
7 | $3,350 | $1,600 |