Problem:
Roswell Energy Company is installing new equipment at a cost of $10 million. Expected cash flows from this project over the next five years will be $1,045,000, $2,550,000, $4,125,000, $6,326,750, and $7,000,000. The companys discount rate for such projects is 14 percent.
Required:
Question: What is the projects discounted payback period?
Note: Show all workings.