Nestor Company is considering the purchase of an asset for $100,000. It is expected to produce the following net cash flows. The cash flows occur evenly throughout each year. Compute the break-even time (BET) period for this investment. (Round to one decimal places.)

Annual Net Cash Flows Present Value of $1 at 10%

Initial investment 1.0000

Year 1 $ 40,000 0.9091

Year 2 $ 40,000 0.8264

Year 3 $ 35,000 0.7513

Year 4 $ 35,000 0.6830

Year 5 $ 30,000 0.6209

Question 23Select one:

a.

0.5 years

b.

3.8 years

c.

1.8 years

d.

3.2 years