A Company Is Evaluating Three Possible Investments What Is the Payback Period for Project A? (Assume That

A company is evaluating three possible investments.The following information is provided by the company: $$\begin{array} { | l | r | r | r | } \hline & \text { Project A } & \text { Project B } & \text { Project C } \\\hline \text { Investment } & \$ 240,000 & \$ 54,000 & \$ 240,000 \\\hline \text { Residual value } & 0 & 18,000 & 38,000 \\\hline \text { Net cash flows: } & & & \\\hline \text { Year 1 } & 62,000 & 34,000 & 98,000 \\\hline \text { Year 2 } & 62,000 & 25,000 & 68,000 \\\hline \text { Year 3 } & 62,000 & 21,000 & 78,000 \\\hline \text { Year 4 } & 62,000 & 18,000 & 38,000 \\\hline \text { Year 5 } & 62,000 & 0 & 0 \\\hline\end{array}$$ What is the payback period for Project A? (Assume that the company uses the straight-line depreciation method. ) (Round your answer to two decimal places. )

A) 2.87 years
B) 1.59 years
C) 3.87 years
D) 5.00 years