Scott Is Considering a Project That Will Produce Cash Inflows

question 17

Multiple Choice

Scott is considering a project that will produce cash inflows of $2,100 a year for 4 years.The project has a 12 percent required rate of return and an initial cost of $6,000.What is the discounted payback period?

• A)3.72 years
• B)3.91 years
• C)4.26 years
• D)4.38 years
• E)never

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