Wenro Company is considering the purchase of an asset for $90,000. It is expected to produce the following net cash flows. The cash flows occur evenly throughout each year.
Year 1 Year 2 Year 3 Year 4 Year 5 Total
Net cash flows 40,000 30,000 40,000 70,000 29,000 209,000
Compute the payback period for this investment.