Newman Automobiles Manufacturing Is Considering Two Alternative Investment Proposals with the Following

Newman Automobiles Manufacturing is considering two alternative investment proposals with the following data: $$\begin{array} { | l | r | r | } \hline & \text { Proposal } \mathbf { X } & \text { Proposal Y } \\\hline \text { Investment } & \$ 11,100,000 & \$ 570,000 \\\hline \text { Useful life } & 5 \text { years } & 5 \text { years } \\\hline \text { Estimated annual net cash inflows for 5 years } & \$ 2,220,000 & \$ 95,000 \\\hline \text { Residual value } & \$ 54,000 & \$ 27,000 \\\hline \text { Depreciation method } & \text { Straight-line } & \text { Straight-line } \\\hline \text { Required rate of return } & 12 \% & 10 \% \\\hline\end{array}$$ Calculate the payback period for Proposal X.

A) 5 years
B) 4 years
C) 9 years
D) 10 years