Four analysts walk into your office and are debating the payback period and discounted payback period for the following cash flows. Which analyst is CORRECT if the discount rate is 10%:

Year	Cash Flows
0	$-75,000
1	$ 20,000
2	$ 20,000
3	$ 20,000
4	$ 20,000

Payback Period Discounted Payback Period

Analyst 1 3.75 Yrs Can not be determined

Analyst 2 2 Yrs Can not be determined

Analyst 3 3.75 Yrs 3.75 Yrs

Analyst 4 Can not be determined 4.25 Yrs

1. Analyst 1
2. Analyst 2
3. Analyst 3
4. Analyst 4