Fargo Inc. is considering a project that will require an initial investment of $2 million. The project will provide incremental cash inflows of $600,000 for the next five years. If the required return on the project is 15%, what is its discounted payback? Should the project be given the go-ahead if the companys investment cutoff threshold is five years?

Select one:

a. 3 years and 11.55 months; yes

b. 4 years and 10 months; yes

c. 4 years and 11.55 months; yes

d. 5 years; no

e. 5 years and 1 month; no