Question: Star Entertainment is considering a project that has an initial cost of $1,050 and produces cash inflows of $525, $485, $445, and $405, for Year

Star Entertainment is considering a project that has an initial cost of $1,050 and produces cash inflows of $525, $485, $445, and $405, for Year 1 through Year 4, respectively. Suppose we require an 8 percent annual return on new investments. What is the projects discounted payback period?

  1. 1.61 years
  2. 1.79 years
  3. 1.99 years
  4. 2.22 years
  5. 2.42 years

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