62. (FIVE POINTS) Jennifer is considering a new five-year cost cutting proposal that would eliminate the Benefits Call Center (a portion of the company's Human Resources department). The proposal is to outsource the work to another company called Open House. Open House is offering to sell the company specialized software that Jennifer's company would put on their website. The software would automatically answer many of the employees' questions about benefits through a series of automated AI "chat bots" that simulate real human interactions. The onetime capital expense of this software would be $350,000 and it is expected that the software will have a useful life of five years. Open House would also handle all calls that cannot be answered by the software using highly-trained, low-cost Open House employees in India at an annual charge of $250,000 for each of the five years. The Benefits Call Center is currently staffed by six employees. All six employees of the Benefits Call Center would be given severance packages (a fixed cost in year 1) equal to three weeks per year of the employees' service with the company, except for the Assistant Manager who will remain with the company to manage the account with Open House. The company pays 17% benefits & taxes on salaries, wages, and severance. The employees' salary & wages, years of service, severance in Year 1 , and estimated annual savings are as follows: Jennifer's company depreciates all assets on a straight-line basis over their useful lives. The company's required return on any project is 13% and the company has an income tax rate of 32%. The company's DuPont identity is as follows: What is the payback for this project? A. 2.34 B. 2.48 C. 2.66 D. 2.81 E. 3.21 F. 3.35 G. 5.17 H. does not payback