Peng Corporation Is Considering the Purchase of New Equipment Costing $$\begin{array} { l r } \text { Periods } & \text { 12 Percent } \\1 & 0.8929 \\2 & 0.7972 \\3 & 0.7118 \\4 & 0.6355\end{array}$$

Peng Corporation is considering the purchase of new equipment costing $30,000. The projected annual after-tax net income from the equipment is $1,200, after deducting $10,000 for depreciation. The revenue is to be received at the end of each year. The machine has a useful life of 4 years and no salvage value. Peng requires a 12% return on its investments. The factors for the present value of $1 for different periods follow:
$$\begin{array} { l r } \text { Periods } & \text { 12 Percent } \\1 & 0.8929 \\2 & 0.7972 \\3 & 0.7118 \\4 & 0.6355\end{array}$$
Calculate the break-even time for this equipment.

A) Break-even time is longer than 4 years.
B) Break-even time is between 3 and 4 years.
C) Break-even time is between 2 and 3 years.
D) Break-even time is between 1 and 2 years.
E) This project will never break-even.