Your firm is considering a capital budgeting project. The required initial outlay is $100,000. The project is expected to have a useful life of four years. The projected cash flows are as follows:

Year 1 - $25,000

Year 2 - $30,000

Year 3 - $35,000

Year 4 - $40,000

Calculate the Payback Period for this project.

Group of answer choices

3.25 Years

4.00 Years

2.50 Years

3.00 Years