Jimba's, Inc., has purchased a new donut maker. It cost $20,000 and has an estimated life of 10 years. The following annual donut sales and expenses are projected:

Sales		$30,000
Expenses:
Flour, etc., required in making donuts	$15,000
Salaries	8,000
Depreciation	2,000	25,000
Net operating income		$5,000

Assume cash flows occur uniformly throughout a year except for the initial investment. The payback period on the new machine is closest to:

6.0 years

2.9 years

4.0 years

4.3 years