A manager is considering the following project for her company.

The initial investment in equipment would be $500,000 with a life span of 5 years. Then annual cost savings would be $160,000 each year and the savage value in year 5 would be $30,000. The companys discount tax rate is 13% and tax rate is 34%. The equipment would be completely depreciated over its life span assuming straight-line depreciation. What would be the closest discounted payback period?

A. 2 years

B. 5 years

C. 4 years

D. 3 years

E. 7 years