San Diego Enterprises is planning to invest in a five-year project costing $270,000. The project is expected to generate annual cash revenues of $90,000 and annual cash expenses (including depreciation) of $30,000. The estimated residual value is $20,000.

The projects payback period is:

a. 3.25 years

b. 5 years

c. 3 years

d. 4.5 years