$3$ pts

Herskovitz Company is considering the purchase of a machine with the following data:

Initial cost

$$162,000$

Annual maintenance costs

$15,000$

Annual cost savings

$75,000$

The cash payback period is

$2\mathrm{.}50$ years.

$2\mathrm{.}70$ years.

$2\mathrm{.}37$ years.

$2\mathrm{.}17$ years.