Compute the payback period for a project with the following cash flows, if the company's discount rate is 0.1375, compounded annually. The firm has a 3-year payback requirement for non-discounted cash flows. Initial outlay is $5,500.

Year	Cash flow
1	2,500
2	1,750
3	1,150

3.00 years

4.00 years

2.20 years

The project does not meet the payback requirement