Assume the following information for a capital budgeting proposal with a five year time horizon:

cost of equipment (zero salvage value) $510,000;

Annual revenues and costs:

sales revenue $300,000

Variable expenses $130,000,

Depreciation expenses $50,000;

Fixed out of pocket costs $40,000.

The payback period for this investment is closest to:

A. 3.00 years

B. 6.38 years

C. 3.92 years

D. 1.59 years