Als Wooden Turnings would like to purchase a specialized bowl-producing machine for $700,000. The machine is expected to have a life of four years and a significant salvage value at the end of year four. Maintenance costs will be $30,000 annually. Annual labor and material savings are predicted to be $250,000 each year. Assume both the cash flow of $250,000 in savings and $30,000 in maintenance occurs evenly throughout the year. What is the payback period for the specialized bowl production machine?

Select one:

a. 29 months

b. 33 month

c. 36 months

d. 38 months