A company is planning to start an investment, which has an initial investment of $215 million. Management has already forecast all future cash flows from this project: $55 million each year, for the next 7 years. At the end of the fourth year the machine will have to be overhauled, which will cost 60 million dollars. The investment (machinery, etc.) will be sold at the end of year 7 for a price of $35 million. The TMAR is 10% nominal annually, compounded semi-annually. a) Calculate the discounted payback period. Solve in Excel, show the formulas and detailed procedure.

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