Assume that a company considers undertaking a project which has a life of 7 years. If the cash flows of the project are, on the average, spread evenly over the life of the project and the company has a cost of capital of 8.4%, the optimal cutoff period is closest to:

Select one:

a. 6.1 years

b. 5.1 years

c. 4.2 years

d. 3.9 years