Shields Company has gathered the following data on a proposed investment project: (Ignore income taxes.)
Investment required in equipment $500,000
Annual cash inflows $82,000
Salvage value $0
Life of the investment 16 years
Discount rate 9%
The payback period for the investment is closest to: (Round your answer to 1 decimal place.)
4.1 years
1.0 years
0.2 years
6.1 years