Bender Ltd has invested $200,000 in a 3 year project. This investment will result in additional cash flows as detailed in the following cash flow and cumulative cash flow schedule. What is the payback period for this project? (Round your answer to two decimal places.)

Year	$ Cash Flow	$ Cumulative Cash Flow
0	$               (200,000)	$                (200,000)
1	$                   66,000	$                (134,000)
2	$                   63,000	$                  (71,000)
3	$                 113,000	$                    42,000

 

a. More than 3 years

b. 2.56 years

c. 2.63 years

d. less than 2 years