A company is considering the purchase of a new piece of equipment for $91,600. Predicted annual cash inflows from this investment are $37,000 (year 1), $29,500 (year 2), $18,500 (year 3), $12,500 (year 4) and $7,000 (year 5). The payback period is:

multiple choice:

3.00 years.

• 4.47 years.

• 2.53 years.

• 4.22 years.

• 3.53 years