What Is the Discounted Payback Period of a Five-Year Project

question 148

Multiple Choice

What is the discounted payback period of a five-year project that costs $18,000 today and pays an annual cash flow of $7,500? Assume the cost of capital is 15%.

• A)2.40 years
• B)3.12 years
• C)3.20 years
• D)3.80 years

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