1. Coca Cola is evaluating an investment in a new syrup production machine. The initial investment in the project is $110,000. It has been estimated that annual cash inflows of $40,000 will be generated by the machine for the next 5 years. The opportunity cost of the project is estimated to be 6%. Calculate the Payback Period (PB) of the project.

   	A.	5 years
   	B.	2.5 years
   	C.	2.75 years
   	D.	3.75 years
   	E.	3.5 years