5. You are considering a new project that has the following cash flows over the 3-year life:

Year 0: $-200,000; Year 1: $128,343; Year 2: 89,453; and Year 3: $74,341. If the required rate of return is 8%, what is the discounted payback period?

1. 1.52 years

2. 1.78 years

3. 2.08 years

4. 3.33 years