The management of company $in$ Dubai is considering the purchase of new IT equipment. The equipment will cost $$580,000$ plus $$20,000$ to deliver and install. If the firm purchases the equipment

the operations manager estimates a saving in labour costs of $$260,000($year $1),$ $$280,000($year $2)$ and $$240,000($year $3)$

What is the potential payback period for the equipment should the company purchase it$?$

a$.2\mathrm{.}25$ years

b$.2\mathrm{.}50$ years

C$.2\mathrm{.}75$ years

d$.3$ years

e$.$ None of the above