An Investment of $42,000 Is Expected to Generate the Following

Multiple Choice

An investment of $42,000 is expected to generate the following annual cash flows:
$\begin{array}{ll}\text { Year 1 } & \$ 10,000 \\\text { Year 2 } & \$ 15,000 \\\text { Year 3 } & \$ 15,000 \\\text { Year 4 } & \$ 12,000\end{array}$
Assume straight-line depreciation is used.Ignore income taxes.What is the payback period?

A) 3 years
B) 3.17 years
C) 3.83 years
D) 4 years