an investment project is expected to yield $10,000 in annual revenues will incur $2000 in fixed cost per year and requires an initial investment of $5000. Variable cost or 60% of sales ignoring taxes in assuming that all revenues and cost are received and paid in cash. What is the payback period in years?

select one:

a. 1.25

b. 2.50

c. 5.00

d. 2.00