An investment project requires a net investment of $100,000. The project is expected to generate annual net cash inflows of $28,000 for the next 5...

An investment project requires a net investment of $100,000. The project is expected to generate annual net cash inflows of $28,000 for the next 5 years. The firm's cost of capital is 12 percent. Determine whether you would accept or reject the project using the discounted payback period method. The company rejects projects that exceed a discounted payback period of over 3 years. 

       4.94 years, Reject the project

       2.5 years, accept

       4.09 years, accept

       1.43 years, accept

       You cannot calculate discounted payback from the information given.