A company wishes to buy new equipment for $85,000. The equipment is expected to generate an additional $35,000 in cash inflows for four years. All cash flows occur at year-end. A bank will make an $85,000 loan to the company at a 10% interest rate so that the company can purchase the equipment. Use the table below to determine break-even time for this equipment.

	Break-even time is longer than 4 years.
	Break-even time is between 1 and 2 years.
	Break-even time is between 2 and 3 years.
	Break-even time is between 3 and 4 years.
	This project will never break-even.