A business owner is considering an investment project. The capital cost of the project is £1,000,000, considered to occur in year 0. The estimated returns are as follows:
- Year 1 net cash inflow £250,000
- Year 2 net cash inflow £400,000
- Year 3 net cash inflow £400,000
- Year 4 net cash inflow £225,000
(a) Calculate the payback period of the project in years and months.