Joe's Parlour is considering a project with an initial cost of $46,700. The project will produce cash inflows of $10,000 a year for the first two years and

$11,677

a year for the following three years. What is the payback period?

Question content area bottom

Part 1

A.

3.71

years

B.

4.07

years

C.

3.29

years

D.

Project never pays back

E.

4.29

years