First Choice Carpets is considering purchasing new weaving equipment costing $734,000 Thecompany's management has estimated that the equipment will generate cash inflows asfollows Year 1 $232,000 2 232,000 3 264,000 4 264,000 5 152,000 Considering the residual value iszero, calculate the payback period (Round your answer to two decimalplaces ) A 3 86 years B 3 84 years C 4 28 years D 3 02 years

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Question: First Choice Carpets is considering purchasing new weaving equipment costing $734,000. Thecompany's management has estimated that the equipment will generate cash inflows asfollows: Year 1

First Choice Carpets is considering purchasing new weaving equipment costing $734,000. Thecompany's management has estimated that the equipment will generate cash inflows asfollows:

Year 1

$232,000

232,000

264,000

152,000

Considering the residual value iszero, calculate the payback period.(Round your answer to two decimalplaces.)

3.86 years

3.84 years

4.28 years

3.02 years

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