Please read the following scenario carefully, before you answer the question below:

(a) the Retail Selling Price of the MX350 is $219 in 1997,

(b) the retailers markup is 50% (of retailers SP),

(c) CIMA sells directly to these retailers,

(d) CIMAs markup is 15% (of manufacturers SP),

(e) CIMAs selling prices increase by 4% every year (the increases take effect in 1998),

(f) CIMAs cost prices increase by 3% every year (the increases take effect in 1998),

(g) CIMA expects to sell 414 units in 1997, 538 units in 1998, 897 units in 1999, 1,778 units in 2000 and 2,249 units in 2001,

(h) the cost of capital for CIMA is 15%,

(i) CIMAs investment in the MX350 was $50,000, and,

(j) year 0 (zero), for PV discounting purposes was 1996.

What will be the pay-back period (PBP) for the investment in this product?

a. 4 years and 47 days

b. 4 years and 127 days

c. 5 years and 47 days

d. 4 years and 31 days

e. 4 years and 227 days