Krate Inc. is considering a $600,000 investment in new equipment that is anticipated to produce the following net cash inflows:

Year Net Cash Inflows

1. 20,000
2. 50,000
3. 110,000
4. 80,000
5. 120,000

If cash flows occur evenly throughout the year, the equipments payback period is

1. 4 years, 2 months
2. 4 years, 3 months
3. Some other period of time not noted
4. 4 years, 4 months
5. 5 years