Question: A project manager is using the payback method to make final decision on which project to undertake. The company has a 15% required rate if

A project manager is using the payback method to make final decision on which project to undertake. The company has a 15% required rate if return and expects a 5% rate of inflation for following 5 years. what is the discounted payback of a project that has cash flows as shown in the table?

Year

Cashflow

0

-500,000

1

50,000

2

75,000

3

150,000

4

150,000

5

750,000

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