Question

In: Finance

Find the discounted payback period for the following cash flows. Year Cash Flow 0 -450,000 1...

Find the discounted payback period for the following cash flows.

Year Cash Flow
0 -450,000
1 135,000
2 155,000
3 165,000
4 200,000

Assume a discount rate of 9%.

Round your answer to two decimal places.

Solutions

Expert Solution

Use spreadsheet for the ease in computations. Enter values and formulas in the spreadsheet as shown in the image below.

The obtained result is provided below.


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