A project has an initial cost of $10,600 and produces cash inflows of $3,700, $4,900, and $2,500 for Years 1 to 3, respectively. What is the discounted payback period if the required rate of return is 7.5 percent

a. 2.65 years

b. never

c. 2.94 years

d. 2.78 years

e. 2.88 years