Logan,IncIs Evaluating Two Possible Investments in Depreciable Plant Assets Calculate the Payback Period for Investment A

Logan,Inc.is evaluating two possible investments in depreciable plant assets.The company uses the straight-line method of depreciation.The following information is available: $$\begin{array} { | l | r | r | } \hline & \text { Investment A } & \text { Investment B } \\\hline \text { Initial capital investment } & \$ 102,000 & \$ 150,000 \\\hline \text { Estimated useful life } & 10 \text { years } & 10 \text { years } \\\hline \text { Estimated residual value } & 0 & \$ 23,000 \\\hline \text { Estimated annual net cash inflow for 10 years } & \$ 20,000 & \$ 46,000 \\\hline \text { Required rate of return } & 10 \% & 14 \% \\\hline\end{array}$$ Calculate the payback period for Investment A.(Round your answer to two decimal places.)

A) 3.04 years
B) 3.95 years
C) 1.00 year
D) 5.10 years