Wrangler Ranch is a western themed summer camp. The ranch is considering the purchase of a new piece of equipment, which would have an initial cost of $1,000,000 and a 5-year life. There is no salvage value for the equipment. The increase in cash flow each year of the equipment's life would be as follows:

Year 1	$	385,000
Year 2	$	360,000
Year 3	$	295,000
Year 4	$	240,000
Year 5	$	195,000

What is the payback period?

• 2.29 years

• 2.86 years

• 2.90 years

• 3.41 years