Garter Company anticipates buying a $250,000 piece of equipment that will cost $20,000 to install, have a nine-year useful life and generate $90,000 per year in pre tax cash flows. Assuming a 30 percent tax rate, what is the payback period for this investment in years?

Garter Company anticipates buying a $250,000 piece of equipment that will cost 520,000 to install, have a nine-year useful life and generate $90.000 per year in pre tax cash flows. Assuming a 30 percent tax rate, what is the payback period for this investment in years? 3 00 0 347 LO 3.75 0 4.50