Gadgetron Inc. is considering a project that will require an initial investment of $400,000. The company's CFO wants to know how long it will take to recover its initial investment in the project. The project's expected net cash flows are: Cash Flow Year $375,000 Year 1 $475,000 Year 2 $450,000 Year 3 Based on this information, determine the project's payback period. 1.05 years 1.10 years 1.21 years 0.89 years The regular payback period ignores the time value of money, which concerns Gadgetron Inc.'s CFO. Calculate the project's discounted payback period. Assume that the project's WACC is 8%. 0.90 years 1.13 years 0.96 years 1.07 years