Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on projects of this risk class is $14$ percent, and that the maximum allowable payback and discounted payback statistic for the project are $2$ and $3$ years, respectively.

Time $0123456$

Cash Flow $-960160440640640240640$

Use the discounted payback decision rule to evaluate this project; should it be accepted or rejected?

Multiple Choice

$2\mathrm{.}76$ years, accept

$2\mathrm{.}87$ years, accept

$3\mathrm{.}13$ years, reject

$3\mathrm{.}15$ years, reject