A piece of equipment costs $24 000. It is expected to generate $7500 of annual cash revenues and $1500 of annual cash expenses. The disposal value at the end of the estimated 10-year life is $2000. What is the payback period?

Select one:

a. 3.20 years

b. 6.67 years

c. 3.67 years

d. 4.00 years