A company is considering investing $35,000 in a project with the following anticipated net cash flows:

Year 1: $10,000 Year 2: $7,000 Year 3: $6,000 Year 4: $11,000 Year 5: $15,000 Year 6: $8,000

In what year will payback occur?

a.) Year 6

b.) Year 4

c.) Year 3

d.) Year 5