An investment project has annual cash inflows of $3,200, $4,100, $5,300, and $4,

Question

An investment project has annual cash inflows of $3,200, $4,100, $5,300, and $4,500, and a discount rate of 14 percent. a. What is the discounted payback period for these cash flows if the initial cost is $5,900? b.What is the discounted payback period for these cash flows if the initial cost is $8,000? c.What is the discounted payback period for these cash flows if the initial cost is $11,000? For all: do not round intermediate calculations and round your final answer to 2 decimal places. PLEASE SHOW WORK!

Explanation / Answer

Discounted value

3200 2807

4100 3154.82
5300 3577.35
4500 2664.36

a.1.98 years

b. 2.57 years

c.3.548 years

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