Compute the discounted payback period for a project with the following cash flows, if the company's discount
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Question:
Compute the discounted payback period for a project with the following cash flows, if the company's discount rate is 0.0950, compounded annually. The firm has a 3-year discounted payback requirement. The initial outlay is $45,000.
Year | Cash flow |
1 | 23,000 |
2 | 18,000 |
3 | 13,000 |
Options
3.09 years |
2.31 years |
2.91 years |
The project does not meet the payback requirement |
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