Company A Limited has recently borrowed R 1.3 million rands at an interest rate of 9% and considering the following projects:

Period Project A Project B Project C Project D 0 -240000 -280000 -500000 -550000 1 52 800 44 800 200 000 220 000 2 52 800 50 400 200 000 200 000 3 52 800 67 200 200 000 220 000 4 52 800 78 400 10 000 11 000 5 52 800 89 600 10 000 11 000 6 52 800 72 800 10 000 11 000 7 52 800 61 600 10 000 11 000

The required rate of return of Company A Ltds equity is 12%, the prime rate is 8% and the inflation rate is 7%.

Based on the information above, the discounted payback period for Project D is:

1. 2 years and 11 months

1. 2 years and 10 months

1. 2 years and 4 months

1. 2 years and 5 months

1. None of the options