A company is planning to purchase a machine that will cost $24,600, have a six-year life, and be depreciated over a three-year period with no salvage value. The company expects to sell the machine's output of 3,000 units evenly throughout each year. A projected income statement for each year of the asset's life appears below. What is the payback period for this machine?

Sales		$93,000
Cost:
Manufacturing	$52,100
Depreciation on machine	4,100
Selling and administrative expenses	31,000	(87,200)
Income before taxes		$5,800
Income tax (35%)		(2,030)
Net income		$3,770

a)6.53 years.

B)3.13 years. C)13.05 years. D) 1.87 year. E)6.00 years.