Christine Robichaud, an Engineer at Opus Ltd

Multiple Choice

Christine Robichaud, an engineer at Opus Ltd., has a $70 000 budget for upgrading the company's warehouse. She has calculated that the improvements could be completed in three months from now and would consume the entire budget. Due to these improvements the company saves $9 000 by the end of the first year, $14 000 by the end of the second year, and $35 000 by the end of the third year, $54 000 by the end of the fourth year and $17 000 by the end of the fifth year. What is the payback period for this project?

A) 1
B) 2
C) 3
D) 4
E) 5