Juno Manufacturing Ltd. is considering replacing its existing equipment with an automated machine for $133,950. Juno depreciates its capital assets using the straight-line depreciation method. Juno estimates that the new machine will reduce production costs by $28,500 per year and that it has a useful life of 6 years. What is the payback period?

a. 1.27 years

b. 4.00 years

c. 4.70 years

d. 6.00 years