An investment project has annual cash inflows of $4,900, $6,000, $6,800, and $8,100, and a discount rate of 16 percent.

Required:

What is the discounted payback period for these cash flows if the initial cost is $8,000? (Do not round your intermediate calculations.)

rev: 09_18_2012

2.60 years

3.70 years

1.85 years

0.85 years

1.35 years