Boccardi Inc., has invested in new pasta manufacturing equipment at a cost of $48,000. The equipment has an estimated useful life of eight years. Estimated annual sales and operating expenses related to the pasta equipment follow:

Annual sales Labor costs Depreciation of equipment Operating income Income taxes Net income $ 88,000 (72,000) 6,000) $ 10,000 4,000 S 6,000 The estlmated payback of the Investment In the pasta equlpment Is: O 3.0 years. O 4.0 years. O 6.0 years 0 8.0 years