Nordyne Inc. is considering a project that will require an initial investment of $$400,000.$ The company's CFO wants to know how long it will take to

recover its initial investment in the project. The project's expected net cash flows are:

Activity Frame

Based on this information, determine the project's payback period.

$1\mathrm{.}11$ years

$1\mathrm{.}00$ years

$1\mathrm{.}17$ years

$0\mathrm{.}89$ years

The regular payback period ignores the time value of money, which concerns Nordyne Inc.$\text{'}$s CFO. Calculate the project's discounted payback period.

Assume that the project's WACC is $8\%.$

$1\mathrm{.}08$ years

$1\mathrm{.}26$ years

$1\mathrm{.}20$ years

$0\mathrm{.}96$ years