Ranger Enterprises Bought a Piece of Equipment for $64,000 That

Ranger Enterprises bought a piece of equipment for $64,000 that will last for 5 years. The equipment will generate net operating cash flows of $14,000 per year and will have a $3,000 salvage value at the end of its life. Straight-line depreciation is used. The income tax rate is 30%. How long is the payback period?

A) 4.6 years
B) 6.5 years
C) 3.8 years
D) None of these answer choices are correct.