An investment project has annual cash inflows of $2,800, $3,700, $5,100, and $4,300, for the next...

An investment project has annual cash inflows of $2,800, $3,700, $5,100, and $4,300, for the next four years, respectively. The discount rate is 11 percent. What is the discounted payback period for these cash flows if the initial cost is $5,200?

How would I do this with the calculator?

Expert Solution

PFB the solution.. rate positively

	i	ii	iii=i*ii	iv
Year	Cash flow	PVIF @ 11%	Present value	Cumulative present value
0	-5200	1	(5,200.00)	(5,200.00)
1	2800	0.900901	2,522.52	(2,677.48)
2	3700	0.811622	3,003.00	325.53
3	5100	0.731191	3,729.08	4,054.60
4	4300	0.658731	2,832.54	6,887.14

Discounted payback period will lie between year 1 and 2

Discounted payback period =		1.89	Year
1+(2677.48/3003)

Ans =				1.89	Year

jeff jeffy answered 2 years ago

An investment project has annual cash inflows of $3,700, $4,600, $5,800, and $5,000, for the next...

An investment project has annual cash inflows of $3,700, $4,600, $5,800, and $5,000, for the next four years, respectively. The discount rate is 13 percent. What is the discounted payback period for these cash flows if the initial cost is $6,400? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Discounted payback period ______ years What is the discounted payback period for these cash flows if the initial cost is $8,500? (Do not round...

An investment project has annual cash inflows of $5,100, $3,200, $4,400, and $3,600, for the next...

An investment project has annual cash inflows of $5,100, $3,200, $4,400, and $3,600, for the next four years, respectively. The discount rate is 15 percent. What is the discounted payback period for these cash flows if the initial cost is $5,000? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Discounted payback period years What is the discounted payback period for these cash flows if the initial cost is $7,100? (Do...

An investment project has annual cash inflows of $3,700, $4,600, $5,800, and $5,000, and a discount...

An investment project has annual cash inflows of $3,700, $4,600, $5,800, and $5,000, and a discount rate of 13 percent. a. What is the discounted payback period for these cash flows if the initial cost is $6,400? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the discounted payback period for these cash flows if the initial cost is $8,500? (Do not round intermediate calculations and round your answer to 2...

An investment project has annual cash inflows of $4,392, $3,276, $4,222, and $3,268 for the next...

An investment project has annual cash inflows of $4,392, $3,276, $4,222, and $3,268 for the next four years, respectively, and a discount rate of 15%. What is the discounted payback if the initial investment is $5,500? (Round answer to 2 decimal places. Do not round intermediate calculations)

An investment project has annual cash inflows of $3,600, $4,500, $5,700, and $4,900, for the next...

An investment project has annual cash inflows of $3,600, $4,500, $5,700, and $4,900, for the next four years, respectively. The discount rate is 15 percent. What is the discounted payback period for these cash flows if the initial cost is $6,300? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Discounted payback period years What is the discounted payback period for these cash flows if the initial cost is $8,400? (Do...

Problem 7-3 Calculating Discounted Payback An investment project has annual cash inflows of $4,400, $3,900, $5,100,...

Problem 7-3 Calculating Discounted Payback An investment project has annual cash inflows of $4,400, $3,900, $5,100, and $4,300, and a discount rate of 14 percent. What is the discounted payback period for these cash flows if the initial cost is $5,700? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Discounted payback period years What is the discounted payback period for these cash flows if the initial cost is $7,800? (Do not...

An investment project has annual cash inflows of $5,300, $6,400, $7,200 for the next four years,...

An investment project has annual cash inflows of $5,300, $6,400, $7,200 for the next four years, respectively, and $8,500, and a discount rate of 20 percent. What is the discounted payback period for these cash flows if the initial cost is $8,000?

An investment project costs $18,900 and has annual cash flows of $3,700 for six years. ...

An investment project costs $18,900 and has annual cash flows of $3,700 for six years. Required : (a) What is the discounted payback period if the discount rate is zero percent? (b) What is the discounted payback period if the discount rate is 4 percent? (c) What is the discounted payback period if the discount rate is 22 percent?

An investment project costs $17,400 and has annual cash flows of $4,300 for six years. a....

An investment project costs $17,400 and has annual cash flows of $4,300 for six years. a. What is the discounted payback period if the discount rate is 5 percent? 4.64, 4.73, 4.55, 4.99 b. What is the discounted payback period is the discount rate is 18 percent? never, 1.02, 3.98, 3.35

An investment project costs $16,600 and has annual cash flows of $4,300 for six years. a....

An investment project costs $16,600 and has annual cash flows of $4,300 for six years. a. What is the discounted payback period if the discount rate is zero percent? b. What is the discounted payback period if the discount rate is 4 percent? c. What is the discounted payback period if the discount rate is 21 percent?

Question