Compute the discounted payback period for a project with the

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Compute the discounted payback period for a project with the following cash flows, if the company's discount rate is 0.0950, compounded annually. The firm has a 3-year discounted payback requirement. The initial outlay is $45,000.

Year

Cash flow

1

23,000

2

18,000

3

13,000

 

3.09 years
2.31 years
2.91 years
The project does not meet the payback requirement

 

 

Reference no: EM13802908

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