1. Polk Products is considering an investment project with the following cash flows:

   Year Cash Flow

   0 -$100,000

   1 40,000

   2 90,000

   3 30,000

   4 60,000

   The company has a 10 percent cost of capital. What is the projects discounted payback?

   		a. 1.67 years
   		b. 1.86 years
   		c. 2.11 years
   		d. 2.49 years
   		e. 2.67 years