First Choice Carpets is considering purchasing new weaving equipment costing $730,000 The company's management has estimated that the equipment will generate cash inflows as follows Year 1 $204,000 2 204,000 3 266,000 4 266,000 5 150,000 Considering the residual value is zero, calculate the payback period (Round your answer to two decimal places ) A 4 61 years B 3 42 years C 3 70 years D 3 21 years

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Question: First Choice Carpets is considering purchasing new weaving equipment costing $730,000. The company's management has estimated that the equipment will generate cash inflows as follows:

First Choice Carpets is considering purchasing new weaving equipment costing $730,000. The company's management has estimated that the equipment will generate cash inflows as follows:

Year 1	$204,000
2	204,000
3	266,000
4	266,000
5	150,000

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

4.61 years

3.42 years

3.70 years

3.21 years

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