What is the project discounted payback period

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Reference no: EM13289605

MacHinery Manufacturing Company is considering a three-year project that has a cost of $75,000. The project will generate after-tax cash flows of $33,100 in Year 1, $31,500 in Year 2, and $31,200 in Year 3. Assume that the appropriate discount rate is 10% and that the firm's tax rate is 40%. What is the project's discounted payback period?

A) 2.81 years
B) 2.33 years
C) 1.22 years
D) The project never reaches payback.

Reference no: EM13289605

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