A project requires an initial investment of $900,000; has a life of 6 years; produces cost savings of $190,000 per year; has a tax rate of 35%, and a discount rate of 9%. The fixed assets will be sold for $50,000 at the end of year 6.

Assuming straight-line depreciation to zero, what is the payback period for this project?

(a) 3.67 years

(b) 3.93 years

(c) 5.10 years

(d) The project never pays back