Wright Corp Is Considering the Purchase of a New Piece

Wright Corp is considering the purchase of a new piece of equipment,which would have an initial cost of $1,000,000 and a 5 year life.There is no salvage value for the equipment.The increase in cash flow each year of the equipment's life would be as follows: What is the payback period?

A) 2.39 years
B) 2.96 years
C) 3.00 years
D) 3.51 years