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    Discounted payback period

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    5. An investment project has the cash flow stream of $-250, $75, $125, $100, and $50. The cost of capital is 12%. What is the discounted payback period?
    3.15 years
    3.38 years
    3.45 years
    3.60 years
    4.05 years

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    In discounted payback period we consider the discounted cash flows. The discounted cash flows are 75/1.12 = ...

    Solution Summary

    The solution explains how to calculate the discounted payback period