An investment project has annual cash inflows of $5,300, $6,400, $7,200, and $8,500, and a discount rate of 20 percent.

What is the discounted payback period for these cash flows if the initial cost is $8,000? (Do not round your intermediate calculations.)

a. 2.56 years

b. 1.81 years

c. 0.81 years

d. 3.62 years

e. 1.31 years