A firm with a 9% WACC is evaluating two mutually exclusive projects with the following cash flows (in millions); calculate the discounted payback for the project that maximizes shareholder value. t = 0 1 2 3 4 5 Project H -1,000 500 400 300 200 100 Project K -1,000 100 200 400 500 500

3.08 years

2.88 years

3.88 years

3.24 years

4.24 year