Evergreen Lawnmowers is considering the purchase of a new machine costing

$840,000.

The company's management is estimating that the new machine will generate additional cash inflows of

$196,000

a year for ten years and have a residual value of

$50,000

at the end of ten years. What is the machine's payback period? (Round your answer to two decimal places.)

Question content area bottom

Part 1

A.

5.6

years

B.

6.41

years

C.

4.29

years

D.

3.33

years