1.Estimated Cash Flows for a Construction Truck that ABC Corp is considering to buy are given below:

Yr

Adjusted

CF

0

$(500.00)

1

$175.00

2

$175.00

3

$175.00

4

$225.00

Note: ABC's Policy is to use a Discount Rate of 15%

The Discounted Payback for the Construction Truck is:

a)

a.3.78

b)

b.2.2

c.3.78

d.3.14

c)

e.1.14

f.3.50