(Ignore Income Taxes in This Problem

Multiple Choice

(Ignore income taxes in this problem.) The management of Helberg Corporation is considering a project that would require an investment of $203,000 and would last for 6 years. The annual net operating income from the project would be $103,000, which includes depreciation of $30,000. The scrap value of the project's assets at the end of the project would be $23,000. The cash inflows occur evenly throughout the year. The payback period of the project is closest to:

A) 1.5 years
B) 2.0 years
C) 1.4 years
D) 1.7 years