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 $2608 and will increase net cash flows by $1630 per year. The new device has a useful life of 7 years and a residual value of $230. What is the payback period for the new wire-pulling device?

A) 1) 74 years
B) 1) 60 years
C) 1) 46 years
D) 1) 40 years