Problem:
Compute the discounted payback period for a project with the following cash flows received uniformly within each year and with a required return of 8%:
Initial Outlay = $100
Cash Flows:
Year 1 = $40
Year 2 = $50
Year 3 = $60
- 2.33 years
- 3.00 years
- 2.21 years
- 2.10 years
Note: Please show how you came up with the solution.