A company is considering the purchase of a new machine for $63,000. Management predicts that the machine can produce sales of $17,500 each year for the next 10 years. Expenses are expected to include direct materials, direct labor, and factory overhead totaling $6,500 per year including depreciation of $5,500 per year. The company's tax rate is 40%. What is the payback period for the new machine?

A. 3.60 years.

B. 6.63 years.

C. 5.21 years.

D. 11.45 years.

E. 42.00 years.