Matthew Corporation is adding a new product line that will require an investment of $138,000. The product line is estimated to generate cash inflows of $25,000 the firstyear, $23,000 the secondyear, and $18,000 each year thereafter for ten more years. What is the paybackperiod?

A.

7.38 years

B.

5.92 years

C.

7 years

D.

7.78 years

7.78 years