Your firm is considering a project with the following cash flows. The firm has a weighted average cost of capital of 7%. The firm typically accepts projects that payback in less than 2.50 years. Using what you know about discounted payback, which of the following statements is true regarding the firm's project selection? Year CF 0-$300,000 1 $275,000 2 -$30,000 3 S100,000 4 $500,000 The project pays back its initial investment in 2.85 years, and the firm should reject the project The project has a payback of 30.42%, and the firm should accept the project. The project pays back its initial investment in 2.55 years, and the firm should reject the project None of the Above