Pique Corporation wants to purchase a new machine for $390,000. Management predicts that the machine can produce sales of $230,000 each year for the next 5 years. Expenses are expected to include direct materials, direct labor, and factory overhead (excluding depreciation) totaling $76,000 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.

a. 2.5 years

b. 3.0 years

c. 3.3 years

d. 3.6 years

e. 4.0 years