Seattle, Inc., is contemplating a project that costs $180,000. Expectations are that annual cash revenues will be $70,000 and annual expenses (including depreciation) will total $30,000. The project has a six year useful life and a residual value of $30,000. Assume Seattle Inc. uses straight line method of depreciation.

The project’s payback period is

a. 2.31 years.
b. 2.77 years.
c. 2.57 years.
d. 2.14 years.