Wildhorse Inc. is contemplating a capital investment of $88000. The cash flows over the projects four years are:

Expected Annual	Expected Annual
Year	Cash Inflows	Cash Outflows
1	$32000	$14000
2	59000	25000
3	80000	30000
4	56000	40000

The cash payback period is

3.27 years.

1.94 years.

2.96 years.

5.25 years.

2) If an asset costs $224000 and is expected to have a $56000 salvage value at the end of its 10-year life, and generates annual net cash inflows of $56000 each year, the cash payback period is

2 years.

5 years.

3 years.

4 years.