Current Attempt in Progress

A company is considering purchasing factory equipment that costs $$408000$ and is estimated to have no salvage value at the end of its $8-$year useful life. If the equipment is purchased, annual revenues are expected to be $$135000$ and annual operating expenses exclusive of depreciation expense are expected to be $$39000.$ The straight$-$line method of depreciation would be used.

The cash payback period on the equipment is

$9\mathrm{.}1$ years.

$2\mathrm{.}2$ years.

$8\mathrm{.}0$ years.

$4\mathrm{.}3$ years.