A company is considering purchasing a machine that costs $240000 and is estimated to have no salvage value at the end of its 8-year useful life. If the machine is purchased, annual revenues are expected to be $70000 and annual operating expenses exclusive of depreciation expense are expected to be $32000. The straight-line method of depreciation would be used. The cash payback period on the machine is

7.3 years.

6.3 years.

3.6 years.