Assume the following information for a capital budgeting proposal with a five-year time horizon: $400,000 Initial investment: Cost of equipment (zero salvage value) Annual revenues and costs: Sales revenues Variable expenses Depreciation expense Fixed out-of-pocket costs $300,000 $130,000 $ 50,000 $ 40,000 The payback period for this investment is closest to: Multiple Choice 2.35 years. 3.08 years. 5.00 years. .75 years