A Company Is Planning to Purchase a Machine That Will

A company is planning to purchase a machine that will cost $24,000 with a six-year life and no salvage value. The company expects to sell the machine's output of 3,000 units evenly throughout each year. A projected income statement for each year of the asset's life appears below. What is the payback period for this machine? Sales………………………………………… $90,000
Costs:
Manufacturing……………………………… $52,000
Depreciation on machine…………………… 4,000
Selling and administrative expenses……….. 30,000 (86,000)
Income before taxes………………………... $ 4,000
Income tax (50%) …………………………... ( 2,000 )
Net income…………………………………. $ 2,000

A) 24 years.
B) 12 years.
C) 6 years.
D) 4 years.
E) 1 year.