Krate Inc. is considering a $662,000 investment in new equipment that is anticipated to produce the following net cash inflows:

Year	Net Cash Inflows
1	$	120,000
2		255,000
3		130,000
4		76,000
5		162,000

If cash flows occur evenly throughout a year, the equipment's payback period is:

Multiple Choice

• 4 years 5 months.

• 4 years 6 months.

• 4 years 7 months.

• 5 years.

• None of these options is correct.