A project manager is assigned to a project early in the project lifecycle. One of the things that must be done is to do a justification for the project. Since very little information is known about the project, the estimates are considered to be rough estimates. The following table is the project manager’s estimate of the cash flow that will take place over the next five years.

End of Year Cash Flow In Cash Flow Out
1                        0                  500,000
2                   300,000              90,000
3                    400,000            100,000
4                    100,000             175,000
5                      50,000              35,000

What is the payback period for this project?
a. One year
b. Two years
c. Three years
d. Four years