Baxter's Market Is Considering Opening a New Location with an Initial

Multiple Choice

Baxter's Market is considering opening a new location with an initial cost of $428,700.This location is expected to generate cash flows of $132,400,$161,500,$187,800,and $201,000 in Years 1 to 4.What is the payback period?

A) 1.86 years
B) 2.72 years
C) 1.31 years
D) 2.54 years
E) 2.31 years