A project requires a net investment (NINV) of $10,000 and is expected to generate net cash flows of $4,000 in year one, $4,000 in year two, $5,000 in year three, and $2,000 in year four. Calculate the payback period and determine if the project is acceptable based on that criteria if the target payback period is 2.33 years.

A.

Accept, the payback period is 3.33 years.

B.

Accept, the payback period is 2.40 years.

C.

Reject, the payback period is 2.40 years.

D.

Accept, the payback period is 2.15 years.