Osprey Company is evaluating two possible investments in depreciable plant assets. The company uses the straight - line method of depreciation. The following information is available: Investment A Investment B Initial capital investment $21,000 $220,000 Estimated useful life 7 years 7 years Estimated residual value $11,000 $10,000 Estimated annual net cash inflow $7,000 $40,000 Required rate of return 13% 15% How long is the payback period for Investment A? A. 0.64 years B. 5.5 years OC. 3 years D. 1.91 years