54 Plant Company is contemplating the purchase of a new piece of equipment for $42,000. Plant is in the 30% income tax bracket. Predicted annual after- tax cash inflows from this investment are $18,000, $13,000, $7,000, $5,000 and $4,000 for years 1 through 5, respectively. The firm uses straight-line depreciation with no residual value at the end of five years. The payback period in years (rounded to the nearest 10th of a year) for this proposed investment is (assume that the after-tax cash inflows occur evenly throughout the year): Multiple Choice 3.8 years 4.8 years. 2.8 years Drau 32 of 40 Next >