In January, Thomas Ltd Purchased a New Machine for $80,000

In January, Thomas Ltd purchased a new machine for $80,000 that has a useful life of 10 years and a terminal value of $5,000. Annual cash operating savings from the machine are $20,000. The income tax rate is 40%. What is the after-tax payback period?

A) 6.67 years
B) 4.00 years
C) 5.26 years
D) 4.85 years