Kit Ltd is considering making an investment of 1.2million to launch a new product. It has undertaken some market research and has estimated the new product could generate the following cash flows: Year 1 240,000 Year 2 265,000 Year 3 240,000 Year 4 660,000 Year 5 290,000 Calculate the payback period for the project and decide which of the following statements is true if Kit Ltd requires payback within 4 years. Payback period is 3 years 9 months, therefore project should be undertaken Payback period is 3 years 9 months, therefore project should not be undertaken |Payback period is 4 years 4 months, therefore project should be undertaken Payback period is 4 years 4 months, therefore project should not be