In: Finance
Given the following cash flows for a capital project, calculate its payback period and discounted payback period. The required rate of return is 8 percent. Year 0 1 2 3 4 5 Cash Flows $-37500 $11250 $11250 $15000 $6000 $6000 The discounted payback period is 0.16 year longer than the payback period. 0.80 year longer than the payback period. 1.27 years longer than the payback period. 1.85 years longer than the payback period.