Suppose a company has proposed a new 5-year project. The project has an initial outlay of $171,000 and has expected cash flows of $36,000 in year 1, $50,000 in year 2, $57,000 in year 3, $65,000 in year 4, and $77,000 in year 5. The required rate of return is 13% for projects at this company. What is the discounted payback for this project? (Answer to the nearest tenth of a year, e.g. 3.2)
Answer 4.5 Years
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