Logan, Inc. is evaluating two possible investments in depreciable plant assets. The company uses the straight-line method of depreciation. The following information isavailable:

	Investment A	Investment B
Initial capital investment	$107,000	$156,000
Estimated useful life	10 years	10 years
Estimated residual value	0	$21,000
Estimated annual net cash inflow for 10 years	$29,000	$50,000
Required rate of return	12%	14%

Calculate the payback period for Investment A. (Round your answer to two decimal places.)

A.

2.25

years

B.

2.97

years

C.

1.00 year

D.

3.69

years