What is the discounted payback period

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Reference no: EM13814662

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A firm is evaluating a project which will cost $10,269 today and provide cash flows in years 1, 2, and 3 of $7,560, $3,286, $3,268 and, respectively. The firm’s discount rate is 8%? (Assume CFs is received at the end of each year). What is the discounted payback period?

a. It is impossible to determine with the information provided

b. The machine is not paid back

c. 1 year

d. 3 years

e. 2 years

Reference no: EM13814662

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