Build Corporation wants to purchase a new machine for $390,000, Management predicts that the machine can produce sales of $230,000 each year for the next 5 years. Expenses are expected to include direct materials, direct labor, and factory overhead (excluding depreciation) totaling $76,000 per year. The firm uses straight-line depreciation with no residual value for all depreciable assets. Build's combined Income tax rate is 40% Management requires a minimum after-tax rate of return of 10% on all investments What is the present value payback period, rounded to one-tenth of a year? (Note: PV factors for 10% are as follows year t= 0.909, year 2 = 0.826; year 3 = 0.751 year 4 = 0683 year 5 = 0.621, the PV annuity factor for 10%, 5 years = 3791. Assume that annual after-tax cash inflows occur at year-end.) Multiple Choice 40 years 36 years 4.0 years. o O (0 O 3.6 years. O 3.3 years. O 2.5 years. O 3.0 years