Using the information provided below and assuming the cash flows occur at a constant rate each year, calculate the discounted payback period for Project B

Undiscounted Free cash flow Discounted Free cash flow at 17% cumulative discounted free cash flow

Initial Outlay ($11,000) ($11,000) ($11,000)

Cash flow Year 1 7,000 $5,982.91 ($5,017.09)

2 4,000 $2,922.05 ( $2,095.04)

3 3,000 $1,873.11 ($221.93)

4 2,000 $1,067.30 $845.37

A. 2.79

B. 3.21

C. 4.21.

D. 3.9