Paramount Carpets Company is considering purchasing new equipment costing $700,000. The company's management has estimated that the equipment will generate cash flows as follows. What is the payback period? Year 1 $200,000 2 200,000 3 250,000 4 250,000 5 150,000 Group of answer choices 3.2 years 4 years 3.5 years 3 years.