First Choice Carpets is considering purchasing new weaving equipment costing $734,000. Thecompany's management has estimated that the equipment will generate cash inflows asfollows:

Year 1

$232,000

2

232,000

3

264,000

4

264,000

5

152,000

Considering the residual value iszero, calculate the payback period.(Round your answer to two decimalplaces.)

A.

3.86 years

B.

3.84 years

C.

4.28 years

D.

3.02 years