Amelia's Napkins and accessories, Inc. is considering making an investment in a new production machine. the firm has estimated that the machine has a useful life of three years. At the end of the three years, You expect all of your investment to be worthless. The total investment required to open this enterprise is $12,000. Your after- tax cash flow is expected to be $3,000 per year and your required rate of return for this project is 12 percent. The payback period for this project is _____ years.

1) 1

2) 3

3) 2

4) 4

5) None of the answers provided is correct