What is the projects discounted payback

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Problem 1: A firm is considering an investment project with the following cash flows: Year 0=-150,000 (initial costs); Year 1=$40,000, Year 2=$90,000; and Year 3=$30,000, Year 4=$60,000, and Year 5 =$-10,000. The company has a 10% cost of capital. What is the project's discounted payback?

a. 2.90 years
b. 2.95 years
c. 3.41 years
d. 4.21 years

Reference no: EM132997957

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