Rogers company, Inc., is considering purchasing a new grinding machine with a useful life of 5 years. The initial outlay for the machine is $175,000, with an additional $25,000 in essential customization. The required rate of return for Dave Company, Inc., is 12.75%. The expected cash flows are as follows: Year/After-tax Expected Cash Flow l/$30,000 2/$40,000 3/$60,000 4/$80,000 5/$60,000 6/$50,000 Calculate the simple payback period 3.69 years 3.88 years 4.36 years 4.99 years