Scott Is Considering a Project That Will Produce Cash Inflows

question 82

Multiple Choice

Scott is considering a project that will produce cash inflows of $2,900 a year for 3 years. The required rate of return is 15.4 percent and the initial cost is $6,800. What is the discounted payback period?

• A) Never
• B) .91 years
• C) .26 years
• D) 1.28 years
• E) 1.39 years

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