Keltner Enterprises Is Considering Investing in a New Packing Machine

Keltner Enterprises is considering investing in a new packing machine.The new machine will provide annual cash operating inflows of $12,300 for 5 years.The cost of the machine is $42,300 and it can be sold at the end of its 5-year useful life for $6,800.Keltner's required rate of return is 10%.What is the packing machine's payback period?

A) 3.44 years
B) 2.89 years
C) 3.99 years
D) 7.69 years