You have paid $$10,000$ for a project, you expect to receive $$1000$ in year $1,$$$2000$ in year $2,$$$3500$ in year $3,$$$4500$ in year $4.$$$3000$ in year $5$ Assume the discount rate is $10\%,$ calculate both Payback and Discount Payback period.

oDiscount payback:

Year $1$: $-10000+\frac{1000}{1\mathrm{.}1}=-9090\mathrm{.}91$

Year $2$: $-9090\mathrm{.}91+1652\mathrm{.}89=-7438\mathrm{.}02$

Year $3$:$-7438\mathrm{.}02+2629\mathrm{.}6=-4808\mathrm{.}42$

Year $4$: $-4808\mathrm{.}42+3073\mathrm{.}56=-1734\mathrm{.}95$

In year $5,\frac{1734\mathrm{.}95}{1862\mathrm{.}76}=0\mathrm{.}93$ year, total $4+0\mathrm{.}93=4\mathrm{.}93$ years