Assuming all cash flows occur at the end of the year and estimated WACC for ABC Ltd. is 12.5% calculate the payback and the discounted payback period

3 points QUESTION 9 ABC Ltd. is planning to set up a new plant. The new project has the same risk profile as the overall company. The plant requires an initial investment of $100 million. The project is expected to generate the following cash flows: Year Cash flow (s mn) 1 2 SS 3 65 4 53 5 52 G -69 Assuming all cash flows occur at the end of the year and estimated WACC for AllCitd is 12.5M, calculate the payback and discounted payback period back pened A B suming all cash flows occur at the end of the year and estimated WACC for ABC Ltd. 65 12.5%, calculate the payback and discounted Payback period 3 years, Discounted payback period 3 years Payback period - 2 years, Discounted payback period 3 years Ether of Payback period or discounted payback period can not be calculated. D.payback period 2 years, Discounted payback period can not be calculated Payback period 3 years, Discounted payback period - 2 years