An investment project has annual cash inflows of $3,400, $4,300, $5,500, and $4,

Question

An investment project has annual cash inflows of $3,400, $4,300, $5,500, and $4,700, and a discount rate of 13 percent.

What is the discounted payback period for these cash flows if the initial cost is $6,100? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

What is the discounted payback period for these cash flows if the initial cost is $8,200? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

What is the discounted payback period for these cash flows if the initial cost is $11,200? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

An investment project has annual cash inflows of $3,400, $4,300, $5,500, and $4,700, and a discount rate of 13 percent.

Explanation / Answer

A. What is the discounted payback period for these cash flows if the initial cost is $6,100?

Ans. 1.92 years

B. What is the discounted payback period for these cash flows if the initial cost is $8,200?

Ans. 2.48 years

C. What is the discounted payback period for these cash flows if the initial cost is $11,200?

Ans. 3.35 years

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