A capital investment requiring one initial cash outflow is forecast to have the operating profits listed below. The investment has an NPV of $20,850, based on a required rate of return of 12%. Calculate the payback period of the investment.
Year Operating profit ($)
1 ………………………. 74,000
2 ………………………. 84,000
3 ………………………. 96,000
4 ………………………. 70,000