A company is considering the purchase of a new piece of equipment for $$90,000.$ It is expected to produce the following net cash flows. The payback period is:

Year $1$ Year $2$ Year $3$ Year $4$ Year $5$

Net cash flows $ $36,000$ $ $30,000$ $ $18,000$ $ $12,000$ $ $6,000$

a$.4\mathrm{.}50$ years.

b$.4\mathrm{.}25$ years.

c$.3\mathrm{.}50$ years.

d$.3\mathrm{.}00$ years.

e$.2\mathrm{.}50$ years.