Question: DYI Construction Co. is considering a new inventory system that will cost $750,000. The system is expected to generate positive cash flows over the next

DYI Construction Co. is considering a new inventory system that will cost $750,000. The system is expected to generate positive cash flows over the next four years in the amounts of $350,000 in year one, $325,000 in year two, $150,000 in year three, and $180,000 in year four. DYI's required rate of return is 8%. What is the discounted payback period of this project?

2.50 years

2.91 years

3.21 years

4.00 years

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