Beyer Company is considering buying an asset for $280,000. It is expected to produce the following net cash flows. Year 11 $68,000 Year 2 $40,000 Year 4 $140,000 Net cash flows. Year Compute the payback period for this investment. (Cumulative net cash outflows must be entered with a minus sign. Round your Payback Period answer to 2 decimal places.) Initial investment Year 1 Year 2 Year 3 Year 4 Year 5 Total Net Cash Flows $ (280,000) Payback period = Year 3 $74,000 Cumulative Cash Flows Year 5 $21,000

Compute the payback period for this investment. (Cumulative net cash outflows must be entered with a minus sign. Round your Payback Period answer to 2 decimal places.)