Stern Associates Is Considering a Project That Has the Following

Multiple Choice

Stern Associates is considering a project that has the following cash flow data.What is the project's payback? $$\begin{array} { l c c c c c c } \text { Year } & 0 & 1 & 2 & 3 & 4 & 5 \\\hline \text { Cash flows } & - \$ 975 & \$ 300 & \$ 310 & \$ 320 & \$ 330 & \$ 340\end{array}$$

A) 2.54 years
B) 2.42 years
C) 3.83 years
D) 3.14 years
E) 3.61 years