Orange Corporation has gathered the following data on a proposed investment project:

Investment in depreciable equipment	$	470,000
Annual net cash flows	$	77,000
Life of the equipment		20	years
Salvage value	$	0
Discount rate		14	%

The company uses straight-line depreciation on all equipment. Assume cash flows occur uniformly throughout a year except for the initial investment.

The payback period for the investment would be:

Multiple Choice

4.1 years

1.0 years

6.1 years

0.2 years