King Fisher Aviation is evaluating an investment project with the following case flows:

$6,000

$5,500

$7,000

$8,000

Discount rate 14 percent

What is the discounted payback period for these cash flows if the initial cost is 15,000? What if the initial cost is $12,000? What if the cost is $16,000?

Fill in the values in the spreadsheet.

Need year 1-4

Input area: Annual cash inflows: Year 1 Year 2 Year 3 Year 4 6,000 5,500 7,000 8,000 Discount rate 14% Initial cost 15,000 Output area: Discounted payments: Year 1 Year 2 Year 3 Year 4 Payback period $