. Suppose your firm is considering investing in a project with the cash flows shown as follows, that the required rate of return on projects of this risk class is 8 percent, and that the maximum allowable payback and discounted payback statistic for the project are three and three and a half years, respectively.

Time	0	1	2	3	4	5
Cashflow	-100,000	30,000	45,000	55,000	30,000	10,000

Calculate the payback and use the payback decision rule to evaluate this project; should it be accepted or rejected? Show your calculations.