$6\mathrm{.}67pts$

You are considering a new investment for your firm. The project requires an initial outlay of $$125,000.$ In addition, after$-$tax cash flows are $$45,000$ for year $1,$$$45,000$ for year $2,$$$55,000$ for year $3,$$$60,000$ for year $4,$$$90,000$ for year $5$ and $$95,000$ for year $6.$ The appropriate discount rate for this project is $12$ percent. What is the payback period for this project?

$2\mathrm{.}64$ years

$2\mathrm{.}11$ years

$3\mathrm{.}87$ years

$3\mathrm{.}41$ years

$4\mathrm{.}29$ years