Perdido Beach Realty Inc. is contemplating a capital investment of $20,000. The cash flows over the project's five year life are projected as follows: Expected Annual Expected Annual Year Cash Inflows Cash Outflows 1 $6,000 $1,000 2 8,000 2,000 3 10,000 2,500 4 12,000 3,000 5 15,000 2,500 The asset will be depreciated using the straight-line method with no expected salvage value. The cash payback period is 2.59 years 2.50 years 2.60 years 3.17 years