You are evaluating an investment project costing $11,400 initially. The project will provide $3,000 in after-tax cash flows in the first year and $5,000 each year thereafter for 4 years. The maximum payback period for your company is 3 years.

Your company's cost of capital is 12%.

a. What is the discounted payback period for this project?

b. Should your company accept this project based on the discounted payback period criterion?