Compute the payback period for an investment with the following net cash flows. (Round your answer to one decimal place.)

YearNet Cash Flows per YearCumulative Net Cash Flows

Initial investment$(150,000)$(150,000)

115,000(135,000)

230,000(105,000)

340,000(65,000)

445,000(20,000)

550,00030,000

Requirements:

1.Determine the payback period in years.

2.Identify the year in which the initial investment is recovered.

3.Calculate the amount recovered by the end of the payback year.