The payback period for the investment would be:

A) 10 years.
B) 4 years.
C) 0.25 years.
D) 2.41 years.

Depreciable Equipment

Tangible assets used in production or operations that are written off over their useful lives due to wear and tear or obsolescence.

Salvage Value

Salvage value is the estimated resale value of an asset at the end of its useful life, relevant in depreciation calculations.

Discount Rate

The interest rate used to discount future cash flows to their present value.