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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