The following project is under consideration by Smith's Food Markets, Inc. Smith's requires a 14% rate of return on projects of this nature. Year 0: Cash Flow -$260,000 Year 1: Cash Flow +$120,000 Year 2: Cash Flow +$120,000 Year 3: Cash Flow +$150,000 What is the Payback Period of the project?

a. 2.81 yrs

b. 1.50 yrs

c. 2.27 yrs

d. 2.62 yrs

e. 2.13 yrs