Question
Using the information provided below and assuming the cash flows occur at a constant rate each year, calculate the discounted payback period for Project A.
Using the information provided below and assuming the cash flows occur at a constant rate each year, calculate the discounted payback period for Project A.
cumntedulative
Undiscouted free Discounted Free Discounted Free
cash flow Cash flow at 15% Cash Flow
Inital Outlay
Cash flow year 1 (11,000) (11,000) (11,000)
cash flow year 2 9000 7826.09 (3173.91)
cash flow year 3 6000 4535.86 1362.95
cash flow year 4 1000 571.75 3907.25
A) 0.3 years
B) 1.7years
C) 2years
D)1.2 years
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