Please help.

The following details are provided by a manufacturingcompany:

Product line

Investment

$1,100,000

Useful life

12 years

Estimated annual net cash inflows for first year

$400,000

Estimated annual net cash inflows for second year

$390,000

Estimated annual net cash inflows for next ten years

$380,000

Residual value

$70,000

Depreciation method

Straight-line

Required rate of return

14%

Calculate the payback period for the investment.(Round your answer to two decimalplaces.)

A.

2.55 years

B.

2.75 years

C.

2.77 years

D.

2.82 years