correct answer is e

Continued from the previous page... MARR = 15%. Initial Cost O&M Costs Alternative 1 $40,000 $4,000 per year $15,000 in years 1 and 2; $16,000 in year 3; $17,000 in year 4; $18,000 in year 5; $19,000 in year 6; and $15,000 in years 7 and 8 $5,000 Benefits Salvage Life (in years) 8 7. The discounted payback period is closest to ... a) 3.52 years b) 3.48 years c) 4.71 years d) 5.44 years e) 4.98 years f) 4.02 years g) 7.33 years