McGlothin Inc $\begin{array}{lcccc}\text { Year } & 0 & 1 & 2 & 3 \\\text { Cash flows } & -\$ 1.150 & \$ 500 & \$ 500 & \$ 500\end{array}$

Multiple Choice

McGlothin Inc.is considering a project that has the following cash flow data.What is the project's payback? $\begin{array}{lcccc}\text { Year } & 0 & 1 & 2 & 3 \\\text { Cash flows } & -\$ 1.150 & \$ 500 & \$ 500 & \$ 500\end{array}$

A) 1.86 years
B) 2.07 years
C) 2.30 years
D) 2.53 years
E) 2.78 years