You are evaluating a project that will cost $ $531$ comma $000,$ but is expected to produce cash flows of $ $121$ comma $000$ per year for $10$years$,$ with the first cash flow in one year. Your cost of capital is $10\mathrm{.}9\%$ 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?

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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.