Garvin Enterprises Is Considering a Project That Has the Following

Multiple Choice

Garvin Enterprises is considering a project that has the following cash flow and WACC data.What is the project's discounted payback? $\begin{array}{lcccc}\text { WACC: } & 10.00 \% \\\text { Year: } & 0 & 1 & 2 & 3 \\\hline \text { Cash flows: } & -\$ 1,000 & \$ 500 & \$ 500 & \$ 500\end{array}$

A) 2.12 years
B) 2.35 years
C) 2.59 years
D) 2.85 years