Sheridan Inc. is considering the purchase of a piece of equipment and has complied the following information

Projected net annual cash flows over the project's life are:

Sheridan uses the cash payback method as an initial screening tool and has a policy that the payback period should not be more than

half of the asset's useful life. Based on this, should Sheridan move forward with further evaluation of the equipment purchase?

Yes, because the cash payback period of $3$ years is less than the asset's $6-$year useful life.

Yes, because the cash payback period is equal to half of the asset's $6-$year useful life of the asset.

Yes, because the cash payback period of $2\mathrm{.}76$ years is less than half of the asset's $6-$year useful life $.$

No$,$ because the cash payback period of $3\mathrm{.}08$ years is longer than half of the asset's $6-$year useful life.

Attempts: $0$ of $1$ used