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5c. For discounted payback period, all the cash flows are discounted using an interest rate except the initial investment. That is, time value of money
5c. For discounted payback period, all the cash flows are discounted using an interest rate except the initial investment. That is, time value of money is taken into consideration. Delta Inc. uses discounted payback period to determine a more accurate payback period for its investment. Delta, invested $38,700,700 in a manufacturing plant that is expected to generate benefits of $30,000 in the first quarter and increase by $15.000 every quarter till the end of year 25. If the firm uses 10% MARR that compounds quarterly, calculate the discounted payback period for this investment
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