ABC Corp invests $300,000 in a new project. The expected net cash flows from this project are $45,000 in Year 1, $55,000 in Year 2, $65,000 in Year 3, $75,000 in Year 4, and $85,000 in Year 5. Calculate the payback period. Additionally, determine the cumulative net cash flows at the end of each year and evaluate whether the initial investment is recovered within the given time frame. Specify the exact year and the fraction of the year in which the payback occurs.