In: Finance
(Discounted payback period) Gio's Restaurants is considering a project with the following expected cash flows: Year Project Cash Flow (millions) 0 $(240) 1 100 2 75 3 100 4 110 If the project's appropriate discount rate is 11 percent, what is the project's discounted payback period? The project's discounted payback period is nothing years. (Round to two decimal places.)
| Discounted PBP | ||||
| Time | Amount | Pvfat 11% | PV | Cumulative |
| - | (240.00) | 1.0000 | (240.00) | (240.00) |
| 1.00 | 100.00 | 0.9009 | 90.09 | (149.91) |
| 2.00 | 75.00 | 0.8116 | 60.87 | (89.04) |
| 3.00 | 100.00 | 0.7312 | 73.12 | (15.92) |
| 4.00 | 110.00 | 0.6587 | 72.46 | 56.54 |
| Discounted Payback = 3 + 15.92/72.46 | ||||
| Discounted Payback = 3 + .22 | ||||
| Discounted Payback = 3.22 Years | ||||