A firm is evaluating a proposal which has aninital investment of $45,000 and has cash flows of $5,000 in year 1, $20,000 in year 2, $15,000 in year 3 and $10,000 in year 4. The payback period of the...

A firm is evaluating a proposal which has aninital investment of $45,000 and has cash flows of $5,000 in year 1, $20,000 in year 2, $15,000 in year 3 and $10,000 in year 4. The payback period of the project is:

Select one:

3.5 years