Palmer Corporation 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 of $137,000. The equipment will have an initial cost of $478,000 and a 8 year useful life. If the salvage value of the equipment is estimated to be $75,000, what is the payback period? Multiple Choice 2.55 yours 3.49 years 424 years 8.00 years