Zion Manufacturing Co. is considering a new inventory system that will cost $450,000. The system is expected to generate -$50,000 (negative) in year one, $315,000 in year two, $110,000 in year three, and $150,000 in year four. Zion's required rate of return is 10%. What is the payback period of this project?

Selected Answer: 4 Years

Answers: 3.5 Years

4 Years

2.7 Years

3.1 Years