The following four-year project has an initial cost of $1,000,000. The future cash inflows for the next four years are $600,000, $500,000, $400,000, and $400,000, respectively. If the rate of return is 12%, determine the discounted payback period for this project.

Multiple Choice

• 2.23 years

• 2.44 years

• 1.94 years

• 1.74 years

• 2.74 years