Zeta Gaming Company has an opportunity to purchase video game phone app that will cost $264,520. 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	Year 2	Year 3	Year 4	Year 5
$88,000	$78,000	$68,000	$58,000	$48,000

If Zeta uses the average approach the payback period for this investment is

Multiple Choice

• 1.52 years.

• 1.83 years.

• 3.89 years.

• 4.39 years.