arrendo, inc. is evaluating two possible investments in depreciable plant assets. the company uses the straightminusline method of depreciation. the following information is available:
investment a investment b
initial capital investment $ 110,000 $ 160,000
estimated useful life 10 years 10 years
estimated residual value 0 $ 30,000
estimated annual net cash inflow for 10 years $ 23,000 $ 41,000
required rate of return 10% 14%
calculate the payback period for investment b. (round your answer to two decimal places.)