Today, Cup Kake Shak is investing $491,000 in a new oven. As a

result, the company expects its cash flows to increase by $64,000 a

year for the next two years and by $98,000 a year for the following

three years. The oven is discarded at the end of Year 5. How long must

the firm wait until it recovers all of its initial investment?

a. 3.97 years

b. 4.18 years

c. 5.70 years

d. 6.00 years

e. The project never pays back.