Joetz Corporation has gathered the following data on a proposed investment project (Ignore income taxes.):

Investment required in equipment	$ 30,000
Annual cash inflows	$ 6,000
Salvage value of equipment	$ 0
Life of the investment	15	years
Required rate of return	10%

The company uses straight-line depreciation on all equipment. Assume cash flows occur uniformly throughout a year except for the initial investment.

The payback period for the investment is:

5 years

15 years

2 years

7.143 years