Compute the Payback statistic for Project X and recommend whether the firm should accept or reject the project with the cash flows shown below if the appropriate cost of capital is 8 percent and the maximum allowable payback is 4 years.

Time:	0	1	2	3	4	5
Cash flow:	-2,700	850	650	900	825	525

2.36 years, accept

3.36 years, reject

2.36 years, reject

3.36 years, accept