Question: discounted pay back method which is the time needed to pay back the original investment in terms of discounted future cash flows. Analyze the numbers
discounted pay back method which is the time needed to pay back the original investment in terms of discounted future cash flows.
Analyze the numbers in the problem.
Use a 10% discount rate.
| Year | Project A | Project B | Project C |
| 2018 | ($3,000,000) | ($3,000,000) | ($3,200,000) |
| 2019 | $0 | $975,000 | $985,000 |
| 2020 | $600,000 | $975,000 | $925,000 |
| 2021 | $900,000 | $975,000 | $995,000 |
| 2022 | $2,700,000 | $975,000 | $975,000 |
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