The following details are provided by a manufacturingcompany:

Product line

Investment

$1,170,000

Useful life

14 years

Estimated annual net cash inflows for first year

$460,000

Estimated annual net cash inflows for second year

$360,000

Estimated annual net cash inflows for next ten years

$400,000

Residual value

$50,000

Depreciation method

Straightline

Required rate of return

15%

Calculate the payback period for the investment.(Round your answer to two decimalplaces.)

A.

2.88 years

B.

2.34 years

C.

2.49 years

D.

2.54 years