Alpha Manufacturing Inc. is considering whether to invest in a new project. The project involves setting up a manufacturing facility to produce a new product line. The initial investment required for the project is $$1,000,000.$

The project is expected to generate cash flows for the next five years as follows:

Year $1$: $$300,000$

Year $2$: $$400,000$

Year $3$: $$500,000$

Year $4$: $$400,000$

Year $5$: $$300,000$

Alpha Manufacturing Inc. decides to use a discount rate of $10\%$ to account for the time value of money and the risk associated with the project.

What is the payback period?

$1\mathrm{.}87$ years

$2$ years

$2\mathrm{.}6$ years

$3\mathrm{.}2$ years