Nestor Company Is Considering the Purchase of an Asset for $100,000

Nestor Company is considering the purchase of an asset for $100,000. It is expected to produce the following net cash flows. The cash flows occur evenly throughout each year. $$\begin{array} { | l | c | } \hline & \text { Annual Net Cash Flows } \\\hline \text { Year 1 } & \$ 40,000 \\\hline \text { Year 2 } & \$ 40,000 \\\hline \text { Year 3 } & \$ 35,000 \\\hline \text { Year 4 } & \$ 35,000 \\\hline \text { Year 5 } & \$ 30,000 \\\hline\end{array}$$ Compute the payback period for this investment. (Round to two decimal places.)

A) 2.85 years.
B) 2.57 years.
C) 3.00 years.
D) 2.50 years.
E) 3.62 years.