The capital investment committee of Rigma Life Co. is currently considering purchasing a new hologram machine to create fictitious voters and has the following information: Purchase price $240,000 Residual value 40,000 Desired payback period 4 years Minimum rate of return 15% Estimated data for the investment is as follows: Projected Year Net Income Cash inflow Cash outflow 1 $46,000 $200,000 $104,000 2 34,000 180,000 96,000 3 22,000 260,000 88,000 4 10,000 140,000 80,000 Total $112,000 780,000 $368,000 Present value of $1 to be received Present value of an Annuity of $1 received at the end of a given number of Time Periods each period for a given number of Time Period Year 12 % 15% 20% Year 12 % 15% 20% 1 0.893 0.870 0.833 1 0.893 0.870 0.833 2 0.797 0.756 0.694 2 1.690 1.626 1.528 3 0.712 0.658 0.579 3 2.402 2.283 2.106 4 0.636 0.572 0.482 4 3.037 2.855 2.589 5 0.567 0.497 0.402 5 3.605 3.353 2.991 What is the payback period in years and months?