Abraxas Electronics bought a new machine for $5 million. This is expected to result in additional cash flows of $1.2 million over the next seven years. What is the payback period for this project? If their acceptance period is 5 years, will this project be accepted?
a. 4.17 years; yes
b. 4.17 years; no
c. 3.83 years, yes
d. 3.83 years; no