Paramount Carpets is considering purchasing new equipment costing $736,000. The company's management has estimated that the equipment will generate cash flows as follows:

year 1 218k

year 218k

year 3 260k

year 4 260k

year 5 168k

Considering the residual value is zero, calculate the payback period. (Round your answer to two decimal places.)

4.39 years3.81 years3.15 years3.62 years