DuPont, Inc. is considering a project that costs $65 million and provides cash flows of $30 million for the first year, $25 million for the second year, and $20 million for years three, four, and five. Assume a cost of capital of 14%.

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

-$65M $30M $25M $20M $20M $20M

What is the payback period of this project?

a. 2.50 years

b. 2.00 years

c. 2.17 years

d. 3.50 years

e. 3.25 years