Information text The following information is relevant to questions 8.7 and 8.8 A company is considering two alternative investment projects. The estimated net cash flows from each of the projects are given below. The company's cost of capital is 9%. Year Cash Flow Alternative Alternative 0 Initial investment (900,000) (1,100,000) 1 Net cash inflow 200,000 100,000 2 Net cash inflow 300,000 200,000 3 Net cash inflow 400,000 400,000 4 Net cash inflow 200,000 600,000 5 Net cash inflow 200,000 500,000 Question 7 Not yet answered Marked out of 1.00 Flag question Question text 8.7 What is the difference, to the nearest whole month, in the payback period for the two alternatives? Select one: A. 8 months B. 3 years 8 months C. 3 years 0 months D. 4 years 0 months