Problem:
An investment project has annual cash inflows of $3,800, $4,700, $5,900, and $5,100, and a discount rate of 14 percent.
Required:
Question 1: What is the discounted payback period for these cash flows if the initial cost is $6,500?
Question 2: What is the discounted payback period for these cash flows if the initial cost is $8,600?
Question 3: What is the discounted payback period for these cash flows if the initial cost is $11,600?
Note: Please explain comprehensively and give step by step solution.