Palmer Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in net income after tax of $128,000. The equipment will have an initial cost of $488,000 and have a 12 year life. If the salvage value of the equipment is estimated to be $80,000, what is the payback period? Multiple Choice 3.01 years 3.81 years 4.56 years 12.00 years