Question: which is the time needed to pay back the original investment in terms of discounted future cash flows. (discounted payback method) What is the difference

which is the time needed to pay back the original investment in terms of discounted future cash flows. (discounted payback method)

What is the difference between the two methods?

Evaluate the value in the data using an excel spreadsheet. You must use Excel formulas.

Use a 10% discount rate.

Yr. 0 2018 CF ($2,000,000) CumulativeCF-$0

Yr. 1 2019 CF-$0 CumulativeCF ($3,000,000)

Yr. 2 2020 CF-$900,000 CumulativeCF ($2,100,000)

Yr. 3 2021 CF-$900,000 CumulativeCF($1,200,000)

Yr. 4 2022 CF-$3,000,000 CumulativeCF $1,800,000

Payback 3.07

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