Green Way Packaging is considering a $600,000 investment in new equipment that is anticipated to produce the following data over a five-year life: Picture

Ignoring income taxes and assuming that cash flows occur evenly throughout a year, the equipment's approximate payback period is:

Select one: a. 1 year, 7 months. b. over 5 years. c. 2 years, 1 month. d. some other period of time not noted in the options. e. 2 years, 5 months.

Year 2 Cash Inflows $350,000 450,000 450,000 340,000 300,000 Cash Outflows $130,000 190,000 170,000 150,000 130,000 Depreciation $120,000 120,000 120,000 120,000 120,000