I know the answer but what I don't understand is how to work the problem. Can you please show me how to work this step by step? What equation you use? NOT IN EXCEL. We can not use excel. We use a BA II Plus.

DYI Construction Co. is considering a new inventory system that will cost $750,000. The system is expected to generate positive cash flows over the next four years in the amounts of $350,000 in year one, $325,000 in year two, $150,000 in year three, and $180,000 in year four. DYI's required rate of return is 8%. What is the payback period of this project?

Selected Answer: Correct 2.50 years

Answers: 4.00 years

3.09 years

2.91 years

Correct 2.50 years