Kensington, Inc. is considering an investment in new equipment.The equipment has a 5.25 year payback period and it has equal annual cash flows.The equipment has no salvage value and will be depreciated straight-line over its 8-year useful life.If the new equipment's initial cost is $33,600, what are the equal annual cash flows?

• A
• :
• $6,720
• B
• :
• $4,200
• C
• :
• $2,200
• D
• :
• $6,400