Calculating Discounted Payback
An investment project has annual cash inflows of $6,400, $6,900, $7,300, and $6,100, and a discount rate of 12 percent. What is the discounted payback period for these cash flows if the initial cost is $8,000? What if the initial cost is $13,000? What if it is $18,000?
Calculating Discounted Payback