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I will thumbs up Elderkin & Martin is considering an investment which will cost $259,000. The investment produces no cash flows for the first year.

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Elderkin \& Martin is considering an investment which will cost $259,000. The investment produces no cash flows for the first year. In the second year, the cash inflow is $58,000. This inflow will increase to $150,000 and then $200,000 for the following two years before ceasing permanently. The firm requires a 14% rate of return and has a required discounted payback period of three years. The firm should the project because the discounted payback period is years. Accept or reject this project? Why? Select one: A. accept; 2.49 B. accept; 3.96 C. accept; 2.26 D. reject; 3.96 E. reject; 3.26

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