help

Patterson Corp. is considering the purchase of a new piece of equipment, which would have an initial cost of $556,000, a 7-year life, and $150,000 salvage value. The increase in net income each year of the equipment's life would be as follows: Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 $111,000 $13 , $101,000 $ 90,000 $ 87,000 $ 82,000 $ 76,000 What is the payback period? Multiple Choice 3.45 years 6.08 years 3.72 years 5.87 years