Copa Cabana 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. Copa Cabanas cost of capital is 12 percent. Copa Cabana uses straight-line depreciation. The investment's payback period in years is:

Select one:

A. 3.3

B. 3.1

C. 2.5

D. 4.0