Calculate if this project will receive approval based on the payback method of capital budgeting. The project has an initial investment of $100,000 and cash flows of $52,000 in year one, $52,000 in year two and $72,000 in year three. The payback decision point is two years how long does it take for packback to occur?

1.92 years

3.42 years

7.65 years

2.37 years

5.4 years