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

Investment in depreciable equipment	$ 570,000
Annual net cash flows	$ 84,000
Life of the equipment	20	years
Salvage value	$ 0
Discount rate	10%

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: (Round your answer to 1 decimal place.)

Multiple Choice

• 0.1 years

• 1.0 years

• 4.8 years

• 6.8 years