An investment project has annual cash inflows of $3,50o, $4,400, $5,600, and $4,800,for the next four years, respectively. The discount rate is 14 percent.a. What is the discounted payback period for these cash flows if the initial cost is$6,200? (Do not round intermediate calculations and round your answer to 2decimal places, e.g., 32.16.)b. What is the discounted payback period for these cash flows if the initial cost is$8,300? (Do not round intermediate calculations and round your answer to 2decimal places, e.g., 32.16.)c. What is the discounted payback period for these cash flows if the initial cost is$11,300? (Do not round intermediate calculations and round your answer to 2decimal places, e.g., 32.16.)Discounted payback perioda.yearsb.Discounted payback periodyearsC.Discounted payback periodyears

Therefore, the Discount payback period is 1.92 years.

Answered: An investment project has annual cash…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter10: Capital Budgeting: Decision Criteria And Real Option

Section: Chapter Questions

Problem 21P

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