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Chee Corporation has gathered the following data on a proposed investment project: (Ignore income taxes in this problem.) Investment required in equipment$510,000Annual cash inflows$90,000Salvage value$0Life

Chee Corporation has gathered the following data on a proposed investment project: (Ignore income taxes in this problem.)

Investment required in equipment$510,000Annual cash inflows$90,000Salvage value$0Life of the investment10 yearsRequired rate of return7%

The company uses straight-line depreciation. Assume cash flows occur uniformly throughout a year except for the initial investment.

The payback period for the investment is closest to:

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