Computing discounted payback period


Polk Products is considering an investment project with the following cash flows: Initial investment -$100,000 Yr 1 40,000 Yr 2 90,000 Yr 3 30,000 Yr 4 60,000. The company has a 10 percent cost of capital. What is the project's discounted payback period?
Less than one year
Exactly one year
Sometime in the second year
Sometime in the third year
Sometime in the fourth year

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Finance Basics: Computing discounted payback period
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