Question
Consider the following table that shows expected annual cash flows from a proposed investment. Year Cash Flow 0 $20 1 $3 2 $4 3 $5
Consider the following table that shows expected annual cash flows from a proposed investment.
| Year | Cash Flow |
| 0 | $20 |
| 1 | $3 |
| 2 | $4 |
| 3 | $5 |
| 4 | $6 |
| 5 | $7 |
If the annual required return is 6%, what is the discounted payback period of the project (rounded to the first decimal)?
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Mathematics Of Finance
Authors: Petr Zima, Robert L. Brown
5th Edition
0070871353, 978-0070871359
