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An investment with a life of 4 years costs $11,400 now and earns the following cash flows: Year 1: $4,500 Year 2: $4,500 Year 3:

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An investment with a life of 4 years costs $11,400 now and earns the following cash flows: Year 1: $4,500 Year 2: $4,500 Year 3: $2,000 Year 4: $2,000 Calculate the payback period. a. 2.75 years b. 3.5 years c. 2.5 years d.3.2 years

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