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An investment project has annual cash inflows of $4,606, $3,114, $4,568, and $3,821 for the next...

An investment project has annual cash inflows of $4,606, $3,114, $4,568, and $3,821 for the next four years, respectively, and a discount rate of 14%.

What is the discounted payback if the initial investment is $5,500? (Round answer to 2 decimal places. Do not round intermediate calculations)

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Answer #1

Discounted payback period = The year in which the cumulative cash flow was last negative + (the positive value of the cumulative cash flow in that year) / (discounted cash flow in the next year)

Discounted payback period = 1 + 1460/2396

Discounted payback period = 1.6093489149 Years

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