The Sip & Dip Donut company is considering the acquisition of a new automatic donut dropper for $600,000. The machine will have a six-year life and will produce before tax cash savings of $200,000 each year. The asset is to be depreciated using the straight-line method with no salvage value. The company's tax rate is 40 percent. The after-tax net cash inflow on the investment is: A. $80,000 B. $120,000 C. $160,000 D. $200,000 The payback period is: A. 3 years B. 3.75 years C. 5 years D. 7.5 years