You are the financial analyst for the Glad Its Finally Over Company. The director of capital budgeting has asked you to analyze a proposed capital investment. The project has a cost of $20,000, and the cost of capital is 10 percent. The projects expected net cash flows are as follows:

(Year) Expected Net Cash Flow

0 - ($30,000)

1 - 12,500

2 - 10,000

3 - 10,000

4 - 8,000

What is the projects payback period?