Redwood Corporation is considering two alternative investment proposals with the following data:

	Proposal X	Proposal Y
Investment	$820,000	$490,000
Useful life	8 years	8 years
Estimated annual net cash inflows for 8 years	$115,000	$79,000
Residual value	$22,000	$
Depreciation method	Straightline	Straightline
Required rate of return	19%	5%

How long is the payback period for Proposal X?

A.

6.2

years

B.

7.13

years

C.

37.27

years

D.

10.38

years