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A company is considering a project with the following characteristics: Cash outflows: ...

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Accounting

A company is considering a project with the following characteristics:
Cash outflows:
Immediate investment in equipment: $739,913
Cash outflow for equipment maintenance in year 3: $50,000
Cash inflows:
Cash savings in year 1: $150,000
Cash savings in year 2: $200,000
Cash savings in year 3: $200,000
Cash savings in year 4: $250,000
Cash savings in year 5: $300,000
Salvage value at the end of year 5: $75,000
What is the Payback Period (in years) for this project? (Round your answer to 2 decimal places.)

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