1. Consider an investment with an initial cost of $20,000 that is expected to last for 5 years. The expected cash flows in Years 1 and 2 are $5,000 each, in Years 3 and 4 are $5,500 each, and the Year 5 cash flow is $1,000. Assume each annual cash flow is spread evenly over its respective year. What is the payback period?

   		3.18 years
   		4.00 years
   		5 years
   		4.55 years
   		3.82 years