Rho Company is considering a new investment that costs $160,000, has an 8 year life and no salvage value. Below is an income statement related to the investments estimated annual revenues and expenses.

Revenues $150,000

Expenses:

Salaries $75,000

Utilities 12,000

Depreciation 20,000

Other cash expenses 10,000 117,000

Net operating income $ 33,000

The payback period on this investment is closest to:

	a	5.0 years
	b	1.1 years
	c	3.0 years
	d	4.8 years