A project has an initial cost of $8,500 and produces cash inflows of $2,600, $4,900, and $1,500 over the next three years, respectively. What is the discounted payback period if the required rate of return is 7%?
A. 2.13 years
B. 2.33 years
C. 2.67 years
D. 2.91 years
Payback period is the time taken to recover the initial investment. In discounted payback we discount the cash ...
This posting offers help with calculating discounted payback period.