Use the Following Information for Questions

Use the following information for questions
A company projects an increase in net income of $40,000 each year for the next five years if it invests $500,000 in new equipment.The equipment has a five-year life and an estimated salvage value of $50,000.The company uses the straight-line method of depreciation.
-What is the cash payback period?

A) 12.5 years
B) 5.56 years
C) 3.85 years
D) 3.57 years