Blanchford Enterprises is considering a project that has the following cash flow data. What is the project's payback? Note that a project's projected IRR can be negative in which case it will be rejected.

Year:

0

1

2

3

4

5

Cash flows:

-$1,040

$430

$425

$420

$415

$410

Select the correct answer.

1.94 years

2.69 years

2.44 years

2.94 years

2.19 years