MacHinery Manufacturing Company is considering a three-year project that has a cost of $70,000. The project will generate after-tax cash flows of $33,100 in Year 1, $31,500 in Year 2, and $31,200 in Year 3. Assume that the firm's proper rate of discount is 10% and that the firm's tax rate is 40%. What is the project's payback? (Show calculations.)

Select one:

a. 2.22 years

b. 2.17 years

c. 2.59 years

d. 2.43 years