Discounted Payback: Nugent Communication Corp. is considering an investment in new technologies. The company’s management expects significant benefits in the first three years after installation and smaller constant benefits in each of the next four years. Using the cash flows in the following table, calculate the discounted payback period for the project assuming a discount rate of 10 percent.

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Year Cash Flow 0 -$9,365,000 1 $2,265,433 2 $4,558,721 3 $3,378,911 4-7 $1,250,000