Consider an Investment Opportunity That Requires an Initial Cash Outlay

Consider an investment opportunity that requires an initial cash outlay of $28,500 and provides cash flows of $8,500 in year 1,$10,000 in year 2,$11,500 in year 3,and $13,000 in year 4.The cost of capital is 12 percent.What is the discounted payback period of the project?

A) 2.87 years
B) 3.37 years
C) 3.42 years
D) 3.58 years