Buster Corporation Is Evaluating a Capital Investment Project Which Would

Buster Corporation is evaluating a capital investment project which would require an initial investment of $285,000 to purchase machinery.The annual revenues and expenses generated solely by this project each year during the project's nine year life would be: $$\begin{array} { | l | r | } \hline \text { Sales } & \$ 185,000 \\\hline \text { Variable expenses } & \$ 38,000 \\\hline \text { Cantributian marpin } & \$ 147,000 \\\hline \text { Fixed expenses: } & \\\hline \text { Salaries expense } & \$ 31,000 \\\hline \text { Rent expense } & \$ 24,000 \\\hline \text { Depreciation expense } & \$ 30,000 \\\hline \text { Tatal fixed expenses } & \$ 85,000 \\\hline \text { Operating incane } & \$ 62,000 \\\hline\end{array}$$ The residual value of the machinery at the end of the nine years would be $15,000.The payback period of this potential project in years would be closest to:

A) 1.6.
B) 3.1.
C) 3.7.
D) 4.6.