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(Ignore taxes in this problem.) The Corporan Corporation is considering an investment that has the following data: Year 1 Year 2 Year 3 Year4 Year5

(Ignore taxes in this problem.) The Corporan Corporation is considering an investment that has the following data:

Year 1 Year 2 Year 3 Year4 Year5
Investment $9,000 $5,000
Cash Flow $5,000 $2,000 $2,000 $3,000 $4,000

Cash inflows occur evenly throughout the year. The payback period for this investment is:

a) 2.0 years

b) 3.5 years

c)4.0 years

d) 4.5 years

Please explain with visual and explain why it is 4.5 years. (show all calculations)

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