A firm with a 10.5 percent cost of capital is considering a project for this years capital budget. The projects expected after-tax cash flows are as follows:

Year:01234Cash flow:-$13,000$6,400$4,800$5,700$6,000

Calculate the projects payback period.

a.3.00 years b.2.68 years c.2.00 years d.2.32 years e.2.50 years