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 $10$ percent, and that the maximum allowable payback and discounted payback statistic for the project are $2$ and $3$ years, respectively.

$\backslash$table$[[$Time$,0,1,2,3,4,5,6],[$Cash Flow,$-1,130,50,550,750,750,350,750]]$

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

Multiple Choice

$1\mathrm{.}07$ years, accept

$4\mathrm{.}00$ years, reject

$2\mathrm{.}71$ years, reject