Melanie Company is considering a capital project that costs $16,000. The project will deliver the following cash flows:
Year 1 Year 2 Year 3 Year 4 Year 5
$8,000 $6,000 $5,000 $6,000 $5,000
Using the incremental approach, the payback period for the investment is:
A. 2 years.
B. 2.4 years.
C. 5 years.
D. 1.66 years.