Builtrite is considering the purchase of a machine with the following cash flow diagram:

year 0 spend $90,000

year 1 $25,000

year 2 $40,000

year 3 $20,000

year 4 $15,000

What is the payback period?

ANSWER CHOICES:

A) 3 years

B)3.33 years

C) 3.67 years

D) 4 years