118. A 30 year project is estimated to cost $35 million dollars and provide annual cash...

118. A 30 year project is estimated to cost $35 million dollars and provide annual cash flows of $5 per year in years 1-5; $4 million per year in years 6-20 and $2 million per year in years 21-30. If the company's required rate of return is 10%, determine the discounted payback for the project.

Expert Solution

Solution :

Discounted payback period: This the period over which investment will be recovered after discounting the cashflows from the investment

Calculated in the excel and value is 15.9 years

jeff jeffy answered 2 years ago

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