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. Compute the break-even time (BET) period for this investment. $$\begin{array} { | l | l | l | } \hline & \begin{array} { c } \text { Annual Net } \\\text { Cash Flows }\end{array} & \begin{array} { c } \text { Present Value } \\\text { of } \$ 1 \text { at } \mathbf { 1 0 } \%\end{array} \\\hline \text { Year 0 } & & 1.0000 \\\hline \text { Year 1 } & \$ 40,000 & .9091 \\\hline \text { Year 2 } & \$ 40,000 & .8264 \\\hline \text { Year 3 } & \$ 35,000 & .7513 \\\hline \text { Year 4 } & \$ 35,000 & .6830 \\\hline \text { Year 5 } & \$ 30,000 & .6209 \\\hline\end{array}$$

A) 2.85 years.
B) 2.57 years.
C) 3.17 years.
D) 2.98 years.
E) 3.62 years.