A proposed acquisition of a forklift on January 1, 2017 will cost $86,000. The company has estimated the forklifts salvage value at the end of its estimated 5-year life to be $21,000. The following amounts have been provided by the management:

2017 2018 2019 2020 2021 Net income $7,300 $8,700 $8,000 $5,100 $1,400

Operating cash flows $20,300 $21,700 $21,000 $18,100 $14,400

The companys required rate of return is 7.6% and its cost of capital is 5.4%. The income tax rate is 32%. Calculate the payback period.

A)2.82 years B)4.50 years C)4.34 years D)14.10 years