A company is considering the purchase of a new piece of equipment for $110,000. Predicted annual cash inflows from this investment are $46,000 (year 1), $35,000 (year 2), $17,000 (year 3), $13,000 (year 4) and $5,000 (year 5). The payback period is ___________.

Group of answer choices

4

3

3.5

5