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 3 years.

Time:	0	1	2	3	4	5
Cash flow:	-2,000	300	650	900	725	500

Which of the following is the correct answer?

a.) 2.21 years, Accept

b.) 3.21 years, Accept

c.) 2.21 years, Reject

d.) 3.21 years, Reject