45.

• Check My Work

An asset has a cost of $12,000 and is expected to return $4,000 a year for 2 years, then $3,000 a year for the next 3 years, if the appropriate discount rate is 11%, what is the payback period of the project?

a. 3.00 years

b. 3.33 years

c. 3.75 years

d. 4.00 years