George Williams buys a machine for his business. The machine costs $150,000. George estimates that the machinecan produce $40,000 cash inflow per year for the next fiveyears. George's cost of capital is 10 percent. What is the payback for this investment?
(a) 1.25 years.
(b) 3.75 years.
(c) 5 years.
(d) 9.43 years.