Consider this date: Year 1 Year 2 Year 3 Project A: Year 4 Initial Investment Outlay Year 5 Net Cost of New ($800,000) $600,000 $450,000 Additional Revenue $300,000 $200,000 $100,00,000 180,000 135,000 90,000 Additional Operating Costs 60,000 30,000 160.000 160.000 Depreciation: 160,000 160,000 160.000 260,000 155,000 50,000 EBT -20.000 -90,000 -91,000 -54,250 Less Tax at 35% - 17,500 7,000 31,500 Net Income $169.999 $100.750 $32.500 $-13,000 $-58,500 Calculate the Traditional Payback for Project A 4.52 years 3.92 years. 04.02 years 3.12 years