Boulder Milling is evaluating a proposal to invest in a new piece of equipment costing $110,000 with the following annual cash flows over the equipment's 4-year useful life:

Cash revenues

$95,000

Cash expenses

(52,000

)

Depreciation expenses (straight-line)

(15,000

)

Income provided from equipment

$28,000

Cost of capital

14 percent

The investment's payback period (rounded to two decimal places) is:

Select one:

A. 2.37

B. 3.33

C. 2.56

D. 3.91