Pantheon Company is purchasing a new equipment that will require an investment of

$138,000.

The equipment is estimated to generate cash inflows of

$25,000

the first year,

$23,000

the second year, and

$18,000

each year thereafter for ten more years. What is the payback period?

A.

7.78

years

B.

5.92

years

C.

7.38

years

D.

7

years