An engineering project analyst is contemplating a 3 year project which will require an initial investment for equipment of $85,000. It is anticipated that, if there is no inflation, annual revenues from the project will be $60,000 and annual cash expenses will be $25,000. It is estimated that the left-over equipment will have a market value of $45,000 at the end of three years.

Payback period of the project is:

a. 4.14 years

b. 3.14 years

c. 1.14 years

d. 2.14 years