Novak ing is contemplating a capital investment of $110160. The cash flows over the project's four years are: Expected Annual Year Expected Annual Cash Inflows $38760 62220 76500 51000 1 Cash Outflows $16320 25500 30600 40800 2 3 The cash payback period is O 2.20 years. 3.50 years. 3.55 years. 3.12 years. Pharoah Co. purchased some equipment 3 years ago. The company's required rate of return is 12%, and the net present value of the project was $(1100). Annual cost savings were: $15000 for year 1: 13000 for year 2; and $11000 for year 3. The amount of the initial investment was Year Present Value of lat 12% 0.893 0.797 0.712 PV of an Annuity of 1 at 12% 0.893 1.690 2.402 1 2 3 $32688 $32326 $30126 O $30488