Cary Swenson
Cary Swenson Is Considering Investing $30,000 in a Project

Cary Swenson
Cary Swenson is considering investing $30,000 in a project with the following cash revenues and expenses: $\begin{array}{lll}&\text { Cash Expenses \&}\\&\text { Revenues }&\text { Depreciation }\\\text { Year 1 } & \$ 10,000 & \$ 12,000 \\\text { Year 2 } & \$ 12,000 & \$ 11,000 \\\text { Year 3 } & \$ 15,000 & \$ 12,000 \\\text { Year 4 } & \$ 20,000 & \$ 12,000 \\\text { Year 5 } & \$ 22,000 & \$ 12,000 \\\text { Year 6 } & \$ 25,000 & \$ 15,000 \\\text { Year 7 } & \$ 25,000 & \$ 15,000 \\\text { Year 8 } & \$ 25,000 & \$ 15,000\end{array}$
-Refer to Cary Swenson. Assume a straight-line depreciation over eight years. What would be the payback period for the project?

A) between 1 and 2 years
B) between 3 and 4 years
C) between 4 and 5 years
D) between 6 and 7 years