Bota Banana Corporation is considering the purchase of a new machine costing $30,000. The machine would generate net cash inflows of $12,000 per year for 5 years. At the end of 5 years, the machine would have no salvage value. Bota Banana's cost of capital is 12 percent. Bota Banana uses straight-line depreciation. The investment's payback period in years is:

Select one:

a. 3.13

b. 4.00

c. 2.81

d. 2.50