A piece of equipment costs $38,000, and is expected to generate $8,200 of annual cash revenues and $1,800 of annual cash expenses. The disposal value at the end of the estimated 8-year life is $2,000. Ignoring income taxes, the payback period is:
8.17 years.
5.94 years.
4.63 years.
None of these.
5.63 years.