Company DEF is looking at a project requiring a $$12,000$ investment which, in turn, will generate the following cash flows: year$-1$$$1,750$; year$-2$$$4,000$; year $-3$$$5,200$; year $-4$$$10,000.$ The firm's fost of capital is $10\mathrm{.}5\%.$ What is the payback period or this project?

$2\mathrm{.}8$ years

$2\mathrm{.}4$ years

This project does not have a payback

$3\mathrm{.}5$ years

I know the answer $2\mathrm{.}4$ years is correct, could you provide how to solve.