Porter Company is analyzing two potential investments.
Project X Project Y
Initial investment $ 83,850 $ 69,000
Net cash flow:
Year 1 28,500 4,900
Year 2 28,500 30,500
Year 3 28,500 30,500
Year 4 0 30,000

The payback period in years (rounded to 2 decimal places) for Project X is:
Group of answer choices
a. 3.30
b. 3.94
c. 3.42
d. 2.94