The following details are provided by a manufacturing company.

Product line

Investment $ 1,050, 000

Useful life 14 years

Estimated annual net cash inflows for first year $ 450, 000

Estimated annual net cash inflows for second year $ 410, 000

Estimated annual net cash inflows for next ten years $ 240, 000

Residual value $ 50, 000

Depreciation method Straight line

Required rate of return 12 % Calculate the payback period for the investment.

a. 2.79

b. 2.33

c. 4.53

d. 4.79