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Question 4) Discounted Payback Period - A project has an initial cost of $175,000 and expected cash inflows of $95,000, $35,000, $55,000 and $65,000 over
| Question 4) | Discounted Payback Period - A project has an initial cost of $175,000 and expected cash inflows of $95,000, $35,000, $55,000 and $65,000 over Years 1 to 4, respectively. What is the Discouted Payback Period of the Projec if the Required Rate of Return is 15 percent? | ||||||||||||
| (4 Points) | |||||||||||||
| Required Rate of Return | 15% | ||||||||||||
| Year | Cash Flows | PV of CashFlows | Value to Recover | ||||||||||
| 0 | $ (175,000.00) | ||||||||||||
| 1 | $ 95,000.00 | -$152,173.91 | |||||||||||
| 2 | $ 35,000.00 | $71,833.65 | |||||||||||
| 3 | $ 55,000.00 | $23,013.07 | |||||||||||
| 4 | $ 65,000.00 | $31,446.43 | |||||||||||
| Payback Period | 3.31 | ||||||||||||
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