Daniel's Market is considering a project with an initial cost of $176,500. The project will not produce any cash flows for the first three years. Starting in Year 4, the project will produce cash inflows of $127,500 a year for three years. The estimated net income for years 1-6 is: -$10,000, -$15,000, $500, $7,200, $100,800, and $110,200. Average book value is $102,000. This project is risky, so the financial manager proposes a required payback period of 5 years, a required average accounting return of 25%, and a discount rate of 17%. What is the project's payback period?

Group of answer choices

4.38 years

1.38 years

4.42 years

3.38 years