1. Assume 10% interest. A proposed project has the following costs and benefits:

   Year	Costs	Benefits
   0	$4,000
   1		$1,000
   2		$1,000
   3		$1,000
   4		$1,000
   5		$2,000

   Using linear interpolation, the project's discounted payback period is most nearly __________.

   	A.	2.89 years.
   	B.	3.35 years.
   	C.	2.26 years.
   	D.	2.05 years.
   	E.	4.65 years.