A project has an initial cost of $18,400 and produces cash inflows of $7,200, $8,900, and $7,500 over three years, respectively What is the discounted payback period if the required rate of return is 16 a 2 31 years b 2 45 years c 2 55 years d 2 62 years e never ...

Discounted Cash Flows Year 1 72001161 620690 Year 2 89001162 661415 Year 3 75001163 480493 ...

A project has an initial cost of $18,400 and produces cash inflows of $7,200, $8,900, and $7,500

Question:

A project has an initial cost of $18,400 and produces cash inflows of $7,200, $8,900, and $7,500 over three years, respectively. What is the discounted if the required rate of return is 16%?
a. 2.31 years
b. 2.45 years
c. 2.55 years
d. 2.62 years
e. never
Payback Period
Payback period method is a traditional method/ approach of capital budgeting. It is the simple and widely used quantitative method of Investment evaluation. Payback period is typically used to evaluate projects or investments before undergoing them,...