Lester's Feed Mill Is Spending $230,000 to Update Its Facility

Multiple Choice

Lester's Feed Mill is spending $230,000 to update its facility. The company estimates that this investment will improve its cash inflows by $46,500 a year for 10 years. What is the payback period?

A) 4.03 years
B) 4.95 years
C) 5.39 years
D) 5.67 years
E) The project never pays back.