Question 1 Capital Budgeting Narrative (Use the following information for questions referring to the narrative): Izmir Estate is considering a new project. The initial investment required is $111,778.49 and the cost of capital is 9%. Expected cash flows over the next four years are given below: Years Cash Flow ($) 14,000 38,000 160,000 70,000 1 N 3 4 Refer to the Capital Budgeting Narrative. What is the Payback period of the project? 3.5 years O 3.0 years 2.6 years 3.4 years 2.5 years