In: Finance
(Discounted payback period) Gio's Restaurants is considering a project with the following expected free cash flows: LOADING... . If the project's appropriate discount rate is 9 percent, what is the project's discounted payback period? The project's discounted payback period is nothing years.YEAR PROJECT CASH FLOW 0 -150 1 85 2 80 3 80 4 100
| Discounted PBP | ||||
| Time | Amount | PVf at 9% | PV | Cumulative |
| - | (150.00) | 1.00 | (150.00) | (150.00) |
| 1.00 | 85.00 | 0.9174 | 77.98 | (72.02) |
| 2.00 | 80.00 | 0.8417 | 67.33 | (4.68) |
| 3.00 | 80.00 | 0.7722 | 61.77 | 57.09 |
| 4.00 | 100.00 | 0.7084 | 70.84 | 127.93 |
| Discounted payback period = 2 + 4.68/61.77 | ||||
| Discounted payback period = 2 + .08 years | ||||
| Discounted payback period = 2.08 years | ||||