Question: Woodgate Inc. is considering a project that has the following after-tax operating cash flows (in millions of dollars):
Year
Project Cash Flow
0 -$300
1 125
2 75
3 200
4 100
Woodgate Inc.'s finance department has concluded that the project has a 10 percent cost of capital.
Refer to Woodgate Inc. What is the project's discounted payback period?