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Fernando Designs is considering a project that has the following cash flow and WACC data. What is the project's discounted payback? Show Work! WACC: 10.00%

Fernando Designs is considering a project that has the following cash flow and WACC data. What is the project's discounted payback? Show Work!

WACC:

10.00%

Year

0

1

2

3

Cash flows

-$900

$500

$500

$500

Answer

A.

1.88 years

B.

2.09 years

C.

2.29 years

D.

2.52 years

E.

2.78 years

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