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5. DISCOUNTED PAYBACK (20 points) Your company has the opportunity to invest $115,000 in a new project opportunity but due to cash flow concerns, your
5. DISCOUNTED PAYBACK (20 points) Your company has the opportunity to invest $115,000 in a new project opportunity but due to cash flow concerns, your boss wants to know when you can pay back the original investment. Using the discounted payback method, you determine that the project should generate inflows of $45,000, $45,000, $43,000, $29,000, and $23,000, respectively, for an expected five years after completion of the project. Your firm's required rate of return is 11.25%. Calculate how long it will take to pay back the initial project investment
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