Shields Company has gathered the following data on a proposed investment project: (ignore income taxes in this problem.)

Investment required in equipment $440,000

Annual cash inflows $77,000

Salvage value $0

Life of the investment 20 years

Required rate of return 13%

The company uses straight line depreciated. Assume cash flows occur uniformly throughout a year except for the intial invesstment.

The payback period for investment is closest to

A.) 0.2 years

B.) 1.0 years

C.) 3.7 years

D.) 5.7 year