Pique Corporation wants to purchase a new machine for $342,000 Management predicts that the machine can produce sales of $214,000 each year for the next 5 years. Expenses are expected to include direct materials, direct labor, and factory overhead (excluding depreciation) totaling $78,000 per year. The firm uses straight-line depreciation with no residual value for all depreciable assets. Pique's combined income tax rate is 40% Management requires a minimum after-tax rate of return of 10% on all Investments. What is the present value payback period, rounded to one-tenth of a year? (Note: PV factors for 10% are as follows: year 1 = 0.909: year 2-0826: year 3 = 0.751 year 4 -0.683; year 5 = 0.621; the PV annuity factor for 10%, 5 years = 3.791. Assume that annual after-tax cash inflows occur at year-end) Multiple Choice 25 years 3.0 years 3.3 years 3.6 years 40 years