Question: First Choice Carpets is considering purchasing new weaving equipment costing $ 708 comma 000$708,000. The company's management has estimated that the equipment will generate cash

First Choice Carpets is considering purchasing new weaving equipment costing

$ 708 comma 000$708,000.

The company's management has estimated that the equipment will generate cash inflows as follows:

Year 1

$ 204 comma 000$204,000

2

204 comma 000204,000

3

254 comma 000254,000

4

254 comma 000254,000

5

156 comma 000156,000

Considering the residual value is zero, calculate the payback period. (Round your answer to two decimal places.)

A. 3.18

years

B.

3.53

years

C.

4.49

years

D.

3.75

years

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