Floyd Clymer is the CFO of Bonavista Mustang, a manufacturer of parts for classic automobiles. Floyd is considering the purchase of a two$-$ton press which will allow the firm to stamp out auto fenders. The equipment costs $$250,000.$ The project is expected to produce after$-$tax cash flows of $$60,000$ the first year, and increase by $$10,000$ annually; the after$-$tax cash flow in year $5$ will reach $$100,000.$ Liquidation of the equipment will net the firm $$10,000$ in cash at the end of five years, making the total cash flow in year five $$110,000.$

Assume the required return is $15\%.$ What is the project's discounted payback period?

a$.$

Longer than the project's life.

b$.$

four years

c$.$

five years

d$.$

three years

e$.$

two years