Compute the discounted payback period for a project with the following cash flows, if the company's discount rate is 0.0950, compounded annually. The firm has a 3-year discounted payback requirement. The initial outlay is $45,000.
|
Year
|
Cash flow
|
|
1
|
23,000
|
|
2
|
18,000
|
|
3
|
13,000
|
The project does not meet the payback requirement
|