The following data are given for the Alright Company:

Initial Cash Cost of Investment

Estimated Annual Cash Savings

Predicted Residual Value at End of Life

Estimated Useful Life

$$75,000$

$18,000$

$3,000$

Cost of Capital

Compute the Payback Period?

$10\mathrm{.}714$ years.

$7\mathrm{.}000$ years.

$6\mathrm{.}000$ years.

$4\mathrm{.}167$ years.

$25\mathrm{.}00$ years.