Sparky the Electrician Specializes in Rewiring Historic Houses

Sparky the Electrician specializes in rewiring historic houses.Sparky recently purchased a new wire-pulling device that will decrease the time to complete each job and increase total revenues.The device will cost $4,375 and will increase net cash flows by $1,750 per year.The new device has a useful life of 7 years and a residual value of $250.What is the payback period for the new wire-pulling device?

A) 2.64 years
B) 2.50 years
C) 2.36 years
D) 2.19 years