Stern Associates is considering a project that has the following cash flow data. What is the project's payback?

Year

Cash flows

0

-$550

1

$300

2

$310

3

$320

4

$330

$340

a. 2.20 years

b. 1.86 years

c. 1.81 years

d. 1.77 years

e. 1.70 years