Bradshaw Inc. is contemplating a capital investment of $88,000. The cash flows over the project's four years are:

Expected Annual Year	Expected Annual Cash Inflows	Cash Outflows
1	$30,000	12,000
2	45,000	20,000
3	60,000	25,000
4	50,000	30,000
ignore last row

The cash payback period is...

1) 3.59 years

2) 3.50 years

3) 2.37 years

4) 3.20 years