Masulis Inc. is considering a project that has the following cash flow. Assume the maximum allowable Discounted Payback (DPB) period is 3 years. What is the discount payback period? Should the project be accepted or rejected based on the DPB criteria? Year Cash Flows 0 -950 1 525 2 485 3 445 4 405

Select one:

a. 2.22 years, accept the project since DPB < 3 years

b. 1.88 years, reject the project since DPB < 3 years

c. 2.22 years, reject the project since DPB < 3 years

d. 1.88 years, accept the project since DPB < 3 years