Ocean Wave Packaging is considering a $703,000 investment in new equipment that is anticipated to produce the following data over a five-year life:

Year	Cash Inflows				Cash Outflows				Depreciation
1	$	400,000			$	130,000			$	110,000
2		500,000				190,000				110,000
3		500,000				170,000				110,000
4		390,000				150,000				110,000
5		350,000				130,000				110,000

Ignoring income taxes and assuming that cash flows occur evenly throughout a year, the equipment's approximate payback period is:

Multiple Choice

• 1 years 6 months.

• 2 years 1 month.

• 2 years 4 months.

• Over 5 years.

• None of these options is correct.