Greenbriar Cotton Mill Is Spending $284,000 to Update Its Facility

Multiple Choice

Greenbriar Cotton Mill is spending $284,000 to update its facility.The company estimates that this investment will improve its cash inflows by $50,500 a year for 8 years.What is the payback period?

A) 4.03 years
B) 4.95 years
C) 5.48 years
D) 5.62 years
E) The project never pays back.