Figure 3 Glady, Inc., Is Considering the Purchase of Production Equipment That

Figure 3
Glady, Inc., is considering the purchase of production equipment that costs £800,000. The equipment is expected to generate annual cash inflows of £250,000. The equipment is expected to have a useful life of five years with no salvage value. The firm's cost of capital is 14 percent.
-Refer to Figure 3. Payback for Glady's project is

A) 5 years
B) 3.2 years
C) 4 years
D) 3.125 years