Electric Company is planning to spend $74,000 for a new machine, to be depreciated on the straight-line basis over ten years with no salvage value. The related cash flow from operations, net of income taxes, is expected to be $10,000 a year for each of the first five years and $8,000 for each of the next five years. What is the payback period?

• A. 6.2 years.
• B. 6.6 years.
• C. 7.0 years.
• D. 7.8 years.
• E. 8.0 years.