Question $4$

$1pts$

Carmen Electronics bought new machinery for $$3$ million. This is expected to result in additional cash flows of $$1\mathrm{.}25$ million over the next six years. The firm's cost of capital is $11$ percent. What is the discounted payback period for this project? If the firm's acceptance period is three years, will this project be accepted?

$3\mathrm{.}87$ years; yes

$2\mathrm{.}94$ years; yes

none of these

$3\mathrm{.}87$ years; no

$2\mathrm{.}94$ years; no