Need assistance with homework assignment, please.
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