Medianite Manufacturing bought a new machine for $2,538,966. The company expects additional cash flows from the machine of $950,225, $1,058,436, and $1,491,497 over the next three years. What is the payback period for this project? If their acceptance period is 2.5 years, will this project be accepted?
a. 4.17 years; yes
c. 2.36 years, yes
b. 4.17 years; no
d. 3.83 years; no