The Electrical Engineering Company is considering a new project that will require an initial cash investment of $612,000. The project will produce no cash flows for the first three years. The projected cash flows for years 4 through 8 are $84,000, $109,000, $115,000, $121,000, and $104,000, respectively. How long will it take the firm to recover its initial investment in this project?
a. 5.81 years
b. 6.05 years
c. 6.96 years
d. 7.90 years
e. This project never pays back