Tomlin Company Spends $12,000 for a Forklift with an Estimated

Tomlin Company spends $12,000 for a forklift with an estimated useful life of four years.The company expects annual savings of $4,000 per year for four years,and a salvage value of $5,000 at the end of 4 years.What is the payback period?

A) 2 years
B) 2.8 years
C) 3 years
D) 4 years