4. Find the Discounted Payback period for the following projects. The discount rate is 7%. Initial...

4. Find the Discounted Payback period for the following projects.

The discount rate is 7%.

Initial Outlay 17,827

Year 1 5917

Year 2 5484

Year 3 5968

Year 4 8405

Expert Solution

Calculation of discounted payback period:
Time	Amount	PVf@ 7%	PV	Cumulative
-	(17,827.00)	1.00	(17,827.00)	(17,827.00)
1.00	5,917.00	0.93	5,529.91	(12,297.09)
2.00	5,484.00	0.87	4,789.94	(7,507.16)
3.00	5,968.00	0.82	4,871.67	(2,635.49)
4.00	8,405.00	0.76	6,412.13	3,776.64
Discounted payback period= 3+2635.49/6412.13
Discounted payback period= 3.41 years

jeff jeffy answered 4 months ago

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