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 $102,000. The equipment will have an initial cost of $405,000 and have a 12 year life. If the salvage value of the equipment is estimated to be $78,000, what is the payback period? 3.13 years 3.97 years 4.72 years 12.00 years