Adams Manufacturing spent $30,000 on a new sterilization conveyor belt, which resulted in a cost savings of $4202 per year. The length of time it should take to recover the investment at 8% per year is closest to:
(a) Less than 6 years
(b) 7 years
(c) 9 years
(d) 11 years
30,000 = 4202(P/A,8%,n)
(P/A,8%,5) = 7.1395
n = 11 years
(d) 11 years
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