Please analyze the following project. All cash flows are in millions, they are assumed to be after-tax and they occur evenly over each year. The client requires a 20% rate of return.

Year	Cash Flow	Discounted Cash Flows
0	-4,500
1	1,500
2	1,700
3	4,500
IRR
NPV

Payback for this Project is:

Multiple Choice

• The Project has a payback of 2.05 years

• The Project has a payback of 2.29 years

• The Project has a payback of 3.25 years

• The Project has a payback of 1.97 years