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HighFlux Inc. is reviewing a five-year capital investment that requires an initial cash outlay of $450,500 for equipment. Management anticipates an additional working capital Investment of $50,000 to be needed at the beginning of the project, which will be recovered at the project's end. The equipment will be depreciated for tax purposes using the straight-line method. The equipment will have no salvage value at the end of the five-year period. The following are the project's five-year expected operating cash flows: Year 1: $170,000 Year 2: $155,000 Year 3: $162,000 Year 4: $173,000 Year 5: $186,000 The company's anticipated tax rate is 25%, and the company's required rate of return for similar projects is 10%. The investment's payback period is closest to a) 3.80 years. b) 4.04 years. c) 3.44 years. d) 3.47 years