You are evaluating a project that will cost

$ $531$ comma $000$$$531,000,$

but is expected to produce cash flows of

$ $125$ comma $000$$$125,000$

per year for

$1010$

$$years$,$ with the first cash flow in one year. Your cost of capital is

$10\mathrm{.}9\%10\mathrm{.}9\%$

and your$$ company's preferred payback period is three years or less.

a$.$ What is the payback period of this$$ project?

b$.$ Should you take the project if you want to increase the value of the$$ company?

Question content area bottom

Part $1$

a$.$ What is the payback period of this$$ project?

The payback period is

enter your response here

years.$($Round to two decimal$$ places.$)$