DYI Construction Co. is considering a new inventory system that will cost $750,000. The system is expected to generate positive cash flows over the next four years in the amounts of $350,000 in year one, $325,000 in year two, $150,000 in year three, and $180,000 in year four. DYI's required rate of return is 8%. What is the payback period of this project?

A) 4.00 years

B) 3.09 years

C) 2.91 years

D) 2.50 years

DYI Construction Co. is considering a new inventory system that will cost $750,000. The system is expected to generate positive cash flows over the next four years in the amounts of $350,000 in year one, $325,000 in year two, $150,000 in year three, and $180,000 in year four. DYI's required rate of return is 8%. What is the payback period of this project?

A) 4.00 years

B) 3.09 years

C) 2.91 years

D) 2.50 years

Please do not use excel while solving the question. Show how it is resolved as a process and use formula. Thanks