A company is considering the purchase of a new piece of equipment for $90,000. Predicted annual cash inflows from this investment are $36,000 (year 1), S30,000 (year 2), S18,000 (year 3), $12,000 (year 4) and $6,000 (year 5). The payback period is: 4.50 years. 4.25 years 3.50 years. 3.00 years