Question $11(1$ point$)$

A company is considering a new product that will increase its net profits. The initial investment in equipment will be $$70,000.$ As part of the payback period analysis of this project, management has estimated the following revenues and costs per year for the next eight years: revenues $-$ $$69,000$; cost of goods sold $-$ $$51,000$; CCA $$3,890$; interest expense $-$ $$4,000.$ If the company has a tax rate of $25\%,$ which of the following represents the payback period for this project?

a$)6\mathrm{.}6$ years

b$)6\mathrm{.}1$ years

c$)5\mathrm{.}2$ years

d$)4\mathrm{.}8$ years