First Choice Carpets is considering purchasing new weaving equipment costing $738,000. The company's management has estimated that the equipment will generate cash inflows as follows:

Year 1: $218,000

Year 2: $218,000

Year 3: $268,000

Year 4: $268,000

Year 5: $152,000

Considering the residual value is zero, calculate the payback period. (Round your answer to two decimal places.)

Answer choices:

A. 3.77 years

B. 4.46 years

C. 3.13 years

D. 3.61 years