An Initial Investment of $42,000 Is Expected to Generate Annual

Multiple Choice

An initial investment of $42,000 is expected to generate annual cash flows of $10,000, $15,000, $15,000, and $12,000, respectively.Assume straight-line depreciation and ignore income taxes.The payback period is _____.

A) 3.83 years
B) 3.17 years
C) 3 years
D) indeterminable because the cash flows are uneven