Pearl Manufacturing Company provides glassware machines for major department store retailers. The company has been investigating a new piece of machinery for its production department. The old equipment has a remaining life of five years and the new equipment has a value of $239,400 with a five-year life. The expected additional cash inflows are $63,000 per year. What is the payback period for this investment?

• A. 2.5 years
• B. 4.5 years
• C. 3.8 years
• D. 5 years