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Zeta Gaming company has an opportunity to purchase a video game phone app that will cost $150,000. Zeta expects the demand for the app to

Zeta Gaming company has an opportunity to purchase a video game phone app that will cost $150,000. Zeta expects the demand for the app to start strong but to diminish as people tire of the game. The expected cash inflows are as follows:

Year 1 -$60,000

Year 2 - 50,000

Year 3 - 40,000

Year 4 - 30,000

Year 5 - 20,000

if Zeta uses the cumulative approach the payback period for this investment is

2years

3years

3.75 years

4.25 years

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