Pro-Am Audio Is a Company That Is Contracted to DJ

Pro-Am Audio is a company that is contracted to DJ private events.Due to a recent increase in bookings,Pro-Am is considering the purchase of another mobile DJ unit.Pro-Am uses the payback method to evaluate its investments.The mobile DJ unit will cost $12,000,has a useful life of 10 years,and will generate $2,000 in net cash inflows per year.The residual value of the unit is $1,000.What is the payback period for the mobile DJ unit?

A) 6.50 years
B) 5.50 years
C) 6.00 years
D) 4.00 years