Resnick Inc $$\begin{array} { l c c c c } \text { Year } & 0 & 1 & 2 & 3 \\\hline \text { Cash flows } & - \$ 475 & \$ 200 & \$ 200 & \$ 200\end{array}$$

Multiple Choice

Resnick Inc.is considering a project that has the following cash flow data.What is the project's payback? $$\begin{array} { l c c c c } \text { Year } & 0 & 1 & 2 & 3 \\\hline \text { Cash flows } & - \$ 475 & \$ 200 & \$ 200 & \$ 200\end{array}$$

A) 2.61 years
B) 1.97 years
C) 2.42 years
D) 2.26 years
E) 2.38 years