Problem:
An investment project has annual cash inflows of $4,800, $3,500, $4,700, and $3,900, and a discount rate of 15 percent.
Required:
Question 1: What is the discounted payback period for these cash flows if the initial cost is $5,300?
Question 2: What is the discounted payback period for these cash flows if the initial cost is $7,400?
Question 3: What is the discounted payback period for these cash flows if the initial cost is $10,400?
Note: Please explain comprehensively and give step by step solution.