Question

Homer is considering a project with cash inflows of $950 a year for Years 1 to 4, respectively. The project has a required discount rate of 11 percent and an initial cost of $2,100. What is the discounted payback period

Answer 1

Answer:

2.68 years

Explanation:

The discounted payback period measures how long it takes for the amount invested in a project to be recovered from the discounted cumulative cash flows.

Explanations on how the payback period is calculated can be found in the attached image.

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