1. 3.20 Discounted Payback. Your company is seriously considering investing in a new project opportunity, but cash flow is tight. Top management is concerned about how long it will take for this new project to pay back the initial investment of $50,000. You have determined that the project should generate inflows of $30,000, $30,000, $40,000, $25,000, and $15,000 for the next five years. Your firms required rate of return is 15%. How long will it take to pay back the initial investment?

Required to calculate of discounted payback period

Year (N)	Cash inflows	Discount Factor	Discounted value	Cumulative inflows
0	$50,000
1	30,000
2	30,000
3	40,000
4	25,000
5	15,000