How to calculate discounted payback period


Discuss the below:

Musika World Inc is considering a project that has the following cash flow and WACC is 12%

Year 0 1 2 3 4

Cash flows -$1200 $400 $425 $450 $475

a. Calculate payback period

b. Calculate discounted payback period

c. Calculate NPV

d. Calculate IRR

e. Calculate MIRR

f. Calculate MNPV (if reinvestment rate is 14%)

 

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Accounting Basics: How to calculate discounted payback period
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