An investment project has annual cash inflows of $4,100, $5,000, $6,200, and $5,

Question

An investment project has annual cash inflows of $4,100, $5,000, $6,200, and $5,400, and a discount rate of 14 percent. What is the discounted payback period for these cash flows if the initial cost is $6,800?

(Do not round intermediate calculations and round your final answer to 2 decimal places (e.g., 32.16).)

Discounted payback period years What is the discounted payback period for these cash flows if the initial cost is $8,900? (Do not round intermediate calculations and round your final answer to 2 decimal places (e.g., 32.16).)

Discounted payback period years What is the discounted payback period for these cash flows if the initial cost is $11,900? (Do not round intermediate calculations and round your final answer to 2 decimal places (e.g., 32.16).) Discounted payback period years

Explanation / Answer

cash flows present value@14% present value of cash flows cumulative value cash flows present value@14% present value of cash flows cumulative value Year cash flows present value@14% present value of cash flows cumulative value -8900 -11900 0 -6800 4100 0.877193 3596.491 3596.491 4100 0.877193 3596.491 3596.491 1 4100 0.877192982 3596.491228 3596.491228 5000 0.769468 3847.338 7443.829 5000 0.769468 3847.338 7443.829 2 5000 0.769467528 3847.337642 3203.508772 amount to be recovered 6200 0.674972 4184.823 1456.171 amount to be recovered 6200 0.674972 4184.823 11628.65 3 6200 0.674971516 4184.8234 5400 0.59208 3197.233 5400 0.59208 3197.233 271.3477 amount to be recovered 4 5400 0.592080277 3197.233498 discounted pay back period Previous Year before the final recovery + balance to be recovered/cash flow of final recovery 2.347965 Year discounted pay back period Previous Year before the final recovery + balance to be recovered/cash flow of final recovery 3.08487 Year discounted pay back period Previous Year before the final recovery + balance to be recovered/cash flow of final recovery 1.832656 Year

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