Gadgetron is considering a project that requires an initital investment of $450,000. The company's CFO wants to know how long it will take to recover its initial investment in the project. The project's expected net cash flows are as follows:

Year 1 $275,000

Year 2 $475,000

Year 3 $400,000

1. What is the prject's payback period?

2. What is the company's discounted payback period? Assume the WACC is 8%.

3 The discounted payback period will always be ____________ (longer or shorter) that the regular payback period.