MCQ (2 Points)J.S. Cereals Corp. is considering replacing its cereal packing equipment. The new equipment costs $ 120,000. The new equipment is more efficient and would generate incremental cash flow of $ 50,000 per year for the next five years. If the cost of capital is 15%; and the maximum payback period set by the firm management is 3 years. The payback period is: Select one: O a. 2.4 years O b. 3 years O c. 4 years O d. 5 years