Crystal Manufacturing Company Provides Glassware Machines for Major Department Store

Crystal Manufacturing Company provides glassware machines for major department store retailers. The company has been investigating a new piece of machinery for its production department. The old equipment has a remaining life of five years and the new equipment has a value of $231,000 with a five-year life. The expected additional cash inflows are $70,000 per year. What is the payback period on this investment?

A) 2.5 years
B) 3 years
C) 3.3 years
D) 5 years