Question $30(3$ points$)$

A company is considering purchasing factory equipment that costs $$480,000$ and is estimated to have no salvage value at the end of its $8-$year useful life. If the equipment is purchased, annual revenues are expected to be $$135,000$ and annual operating expenses exclusive of depreciation expense are expected to be $$39,000.$ The straight$-$line method of depreciation would be used.

The cash payback period on the equipment is

A$)5\mathrm{.}0$ years.

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

C$)8\mathrm{.}0$ years.

D$)13\mathrm{.}3$ years.