A company is considering purchasing a machine for $$26,500.$ The machine will generate income of $$3,400$ per year. Annual

depreciation expense would be $$1,600.$ What is the payback period for the new machine?

Multiple Choice

$3\mathrm{.}3$ years.

$5\mathrm{.}3$ years.

$7\mathrm{.}8$ years.

$16\mathrm{.}6$ years.

$14\mathrm{.}7$ years.