You are the financial analyst for the Oberon Company. The director of capital budgeting has asked you to analyze a proposed capital investment. The project has a cost of $35,000 and the cost of capital is 7.5%. The projects expected net cash flows are as follows:

Data for Problems 11 15 Year Expected Net Cash Flow

Year Expected Cash Flow

0 ($35,000)

1 $14,500

2 $11,000

3 $11,000

4 $5,000

If the cash inflows are received throughout the year, the payback period given this scenario is _____ years (Fill in the blank with your calculation result of two decimal places).