Chee Corporation has gathered the following data on a proposed investment project:

Investment required in equipment $240,000

Annual cash inflows. $50,000

Salvage value 0

Life of the investment. $50,000

Required rate of return. 10%

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:

1. a)0.2 years
2. (b)2.5 years
3. (c)4.8 years
4. (d)5.0 years