Wright Corp. 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 net income each year of the equipment's life would be as follows:

Year 1	$	439,000
Year 2	$	414,000
Year 3	$	349,000
Year 4	$	294,000
Year 5	$	249,000

What is the payback period?

Multiple Choice

• 1.59 years

• 1.88 years

• 2.78 years

• 3.33 years