Compute the payback statistic for Project X and recommend whether the firm should accept or reject the project with the cash flows shown as follows if the appropriate cost of capital is 10% and the maximum allowable payback is 2.5 years.

Time Period (Year): 0 1 2 3 4

Cash flow: -800 -100 300 800 500

__________ payback # of years (round to 2 decimal places)

___________ Accept or Reject?