What is the discounted payback period

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An investment project has an initial cost of $382, and cash flows $105, $130, $150, and $150 for Years 1 to 4, respectively. The cost of capital is 9 percent. What is the discounted payback period?

Answer and working in the form of: "we are expected to clearly write down the important formulas (E.g. present value or future value formula, IRR, NPV, etc.) in letters and substitute numbers into formulas in separate steps"

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Reference no: EM132527529

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