What is the discounted payback period for the cash flows


Problem

An investment project has annual cash inflows of $2,800, $3,700, $5,100, and $4,300, for the next four years, respectively. The discount rate is 9 percent.

i. What is the discounted payback period for these cash flows if the initial cost is $5,200?
ii. What is the discounted payback period for these cash flows if the initial cost is $6.400?
iii. What is the discounted payback period for these cash flows if the initial cost is $10,400?

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Finance Basics: What is the discounted payback period for the cash flows
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