Jammersmith Inc. is considering a new project that will cost $$1,200,000.$ The project is expected to generate the following cash flows over the next five years. $$500,000$ in year one, $$400,000$ in year two, $$300,000$ in year three, $$200,000$ in year four, and $$100,000$ in year five, Jammersmith's required rate of return is $12\%.$

What is the payback period of this project?

$3\mathrm{.}50$ years

$3\mathrm{.}00$ years

$2\mathrm{.}50$ years

$2\mathrm{.}00$ years