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Reynolds Bikes is considering a project that has the following cash flow and WACC data. What is the project's discounted payback? Year: 0 1 2

Reynolds Bikes is considering a project that has the following cash flow and WACC data. What is the project's discounted payback?

Year:

0

1

2

3

4

Cash flows:

-$1,000

$525

$485

$445

$405

a.

1.66 years

b.

1.82 years

c.

2.03 years

d.

2.27 years

e.

2.41 years

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