A company is considering purchasing a machine for $22,700. The machine will generate an after-tax net income of $2,500 per year. Annual depreciation expense would be $2,000. What is the payback period for the new machine?

Multiple Choice

a. 45.4 years.

b. 11.4 years.

c. 2.5 years.

d. 5 years.

e. 9.1 years.