Joanne,Inc Calculate the Payback Period for Investment B

Joanne,Inc.is evaluating two possible investments in depreciable plant assets.The company uses the straight-line method of depreciation.The following information is available: $$\begin{array} { | l | r | r | } \hline & \text { Investment A } & \text { Investment B } \\\hline \text { Initial capital investment } & \$ 110,000 & \$ 153,000 \\\hline \text { Estimated useful life } & 10 \text { years } & 10 \text { years } \\\hline \text { Estimated residual value } & 0 & \$ 30,000 \\\hline \text { Estimated annual net cash inflow for 10 years } & \$ 21,000 & \$ 46,000 \\\hline \text { Required rate of return } & 12 \% & 14 \% \\\hline\end{array}$$ Calculate the payback period for Investment B.(Round your answer to two decimal places.)

A) 3.33 years
B) 1.83 years
C) 3.81 years
D) 5.24 years