Calculating Discounted Payback
An investment project has annual cash inflows of $4,500, $5,600, $6,400, and $7,700, and a discount rate of 12 percent.
Required:
What is the discounted payback period for these cash flows if the initial cost is $7,500? (Do not round your intermediate calculations.)
a. 3.56 years
b. 1.28 years
c. 2.53 years
d. 0.78 years
e. 1.78 years