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Find the Discounted Payback period for the following project. The discount rate is 10% Project X...

Find the Discounted Payback period for the following project. The discount rate is 10%

Project X

Initial Outlay

$17,249

Year 1

$5,113

Year 2

$5,108

Year 3

$5,772

Year 4

$8,459

Round the answer to two decimal places.

Solutions

Expert Solution

Year Project Cash Flows (i) DF@ 10% (ii) PV of Project A ( (i) * (ii) ) Cumulative Cash Flow
0 -17249 1                           (17,249.00)              (17,249.00)
1 5113 0.909                              4,648.18              (12,600.82)
2 5108 0.826                              4,221.49                (8,379.33)
3 5772 0.751                              4,336.59                (4,042.74)
4 8459 0.683                              5,777.61                 1,734.87
NPV                              1,734.87
Discounted Payback Period = 3 YEARS + 4042.74/ 5777.61
3.70 YEARS

jeff jeffy answered 1 year ago
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