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 $12$ percent, and that the maximum allowable payback and discounted payback statistic for the project are $2$ and $3$ years, respectively.

Time $0123456$

Cash Flow $1,15030570770770370770$

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