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(Ignore income taxes in this problem.) Buy-Rite Pharmacy has purchased a small auto for delivering prescriptions. The auto was purchased for $30,000 and will have

(Ignore income taxes in this problem.) Buy-Rite Pharmacy has purchased a small auto for delivering prescriptions. The auto was purchased for $30,000 and will have a 6-year useful life and a $4,200 salvage value. Delivering prescriptions (which the pharmacy has never done before) should increase gross revenues by at least $32,200 per year. The cost of these prescriptions to the pharmacy will be about $25,400 per year. The pharmacy depreciates all assets using the straight-line method. The payback period for the auto is closest to:

4.4 years

3.8 years

5 years

3.7 years

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