Assume the following project cash flows:

Year        Cash Flow

  0             264,300

  1                  0

  2              50,000

  3             150,000

  4              200,000

  5             200,000

Would you accept or reject this project if your required rate of return is 14% and your decision criteria is a four-year discounted payback?

a. Accept

b. Reject

c. Indifferent (the discounted inflows are exactly or very nearly equal to the Investment)

d. Insufficient information (cannot make a decision)