JJ's is reviewing a project with a required discount rate of 15.2 percent and an initial cost of $309,000. The cash inflows are $47,000, $198,000, and $226,000 for Years 1 to 3, respectively. Should the project be accepted based on discounted payback if the required payback period is 2.5 years? 

Accept; The discounted payback period is 2.98 years. 

Reject; The project never pays back on a discounted basis. 

Reject; The discounted payback period is 3.87 years. 

Accept; The discounted payback period is 2.32 years. 

Accept; The discounted payback period is 2.18 years