What is the projects discounted payback period


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Polk Products is considering an investment project with the following cash flows: Initial investment -$100,000 Yr 1 40,000 Yr 2 90,000 Yr 3 30,000 Yr 4 60,000. The company has a 10 percent cost of capital. What is the project's discounted payback period?

  • Less than one year
  • Exactly one year
  • Sometime in the second year
  • Sometime in the third year
  • Sometime in the fourth year

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Finance Basics: What is the projects discounted payback period
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