A company is considering the purchase of new equipment for $480,000. The projected after-tax net income is $80,000 per year after deducting $160,000 of annual depreciation expense. The equipment has a useful life of 3 years and no salvage value. What is the payback period for the new equipment?

a. 2 years.

b. 3 years.

c. 4 years.

d. 5 years.

e. 6 years.