Taggart Inc $$\begin{array} { l c c c c } \text { Year } & 0 & 1 & 2 & 3 \\\hline \text { Cash flows } & - \$ 1,075 & \$ 500 & \$ 500 & \$ 500\end{array}$$

Multiple Choice

Taggart Inc.is considering a project that has the following cash flow data.What is the project's payback? $$\begin{array} { l c c c c } \text { Year } & 0 & 1 & 2 & 3 \\\hline \text { Cash flows } & - \$ 1,075 & \$ 500 & \$ 500 & \$ 500\end{array}$$

A) 2.15 years
B) 1.70 years
C) 2.11 years
D) 1.81 years
E) 2.45 years