What is the discounted payback period

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Question 1 - It will cost $6,000 to acquire an ice cream cart. Cart sales are expected to be $3,600 a year for three years. After the three years, the cart is expected to be worthless as the expected life of the refrigeration unit is only three years. What is the discounted payback period if the discount rate is 10%?

Question 2 - You are considering a project with an initial cost of $7,800. What is the payback period, discounted payback and NPVHRR for this project if the cash inflows are $1,100, $1,640, $3,800, and $4,500 a year over the next four years, respectively?

Reference no: EM133164508

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