Caliber Lawnmower Company is considering the purchase of a new machine costing $800,000. The company’s management is estimating that the new machine will generate additional cash flows of $180,000 a year for 10 years and have a salvage value of $50,000at the end of 10 years. What is the machines payback period?
A) 5.33 years
B) 3.33 years
C) 6.77 years
D) 4.44 years