Question

A project has an initial cost of $52,125, expected net cash inflows of $12,000 per year...

A project has an initial cost of $52,125, expected net cash inflows of $12,000 per year for 8 years, and a cost of capital of 12%. What is the project's discounted payback period? Round your answer to two decimal places.

Homework Answers

Answer #1

cash Flows turn positive after 6 Years

Thus Discounted Payback Period = 6 Years + Net Cash Inflow / cash Flow in Year 7

Discounted Payback Period = 6 Years + 2788.11 / 5428.19

Discounted Payback Period = 6.51 Years

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