range Corporation has gathered the following data on a proposed investment project:

Investment in depreciable equipment	$	530,000
Annual net cash flows	$	74,000
Life of the equipment		20	years
Salvage value	$	0
Discount rate		10	%

The company uses straight-line depreciation on all equipment. Assume cash flows occur uniformly throughout a year except for the initial investment.

The payback period for the investment would be:

Multiple Choice

5.2 years

0.1 years

7.2 years

1.0 years