Wells IncIs Considering a Project That Has the Following Cash Flow

Multiple Choice

Wells Inc.is considering a project that has the following cash flow data.What is the project's payback? $\begin{array}{l}\begin{array}{l}\text { Year: } \\\text { Cash flows: }\end{array}\begin{array}{cccc}0 & 1 & 2 & 3 \\\hline-\$ 1,000 & \$ 500 & \$ 500 & \$ 500\end{array}\end{array}$

A) 1.62 years
B) 1.80 years
C) 2.00 years
D) 2.20 years