Kabab Co. is considering a $230,000 investment, which will provide net returns of $120,000, $140,000, and $200,000 in the second, third, and fourth years, respectively.

a. What is the payback period?

year(s)

month(s)

Round up to the next month

b. The company has a payback rule of 3 years. Should the company undertake the investment?

(click to select)Yes or No