Your division is considering two investment projects, each of which requires an u $50 million. You estimate the cost of capital to be 8% and that the investment wi after-tax cash flows (in millions of dollars). Year 1 2 3 4 What is the discounted payback of Project B? 1.14 years 1.86 years 2.14 years 2,86 years Project A 10 15 25 30 Project B 30 30 10 10

Your division is considering two investment projects, each of which requires an $50 million. You estimate the cost of capital to be 8% and that the investment wi after-tax cash flows (in millions of dollars). What is the discounted payback of Project B? 1.14 years 1.86 years 2.14 years 2.86 years