Your company is evaluating a new project, and you've estimated that the cost of capital for the project will be 8 percent. Assume that you have also projected the following cash flows for the project:

What will this project's discounted payback be?

a. 2.82 years

b. 3.27 years

c. 4.27 years

d. 4.60 years

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Year Cash Flow 0 -$25,700 1 $5000 2 3 4 $10,000 $0 $15,000 5 $8000 6 $4000