Remaining Time: 3 minutes Company A is considering the purchase of a new piece of equipment costing $150,000. The equipment is expected to generate annual cash revenues of $40,000, annual cash expenses of $5,000, and annual depreciation expense of $15,000 for each of the next 10 years; at the end of its useful life, the equipment will have a salvage value of $0. Company A uses the payback method as a screening tool for capital expenditures (no project with a payback greater than two years will be considered). Given this information, which of the following statements is true? O The equipment purchase should not be considered because the payback period is greater than two years. O Since the annual cash flows are even, the payback period cannot be calculated with the information given. O The payback method is not a valid screening tool for capital expenditures. O The equipment purchase should be considered because the payback period is less than two years