He is responsible for any capital budgeting decision in his firm. His firm is spending JPY 330,000,000 to update one of its facilities. Otani-san estimates that this investment will improve its cash inflows by JPY 56,500,000 a year for 10 years. Calculate the payback period!

Select one:

a.

4.03 years

b.

5.48 years

c.

5.84 years

d.

4.95 years