Shannon Co.is considering a project that has the following cash flow and WACC data.What is the project's discounted payback? $\begin{array}{lccccc}
\text { WACC: } & 10.00 \% & & & \
\text { Year } & 0 & 1 & 2 & 3 & 4 \
\text { Cash flows } & -\$ 950 & \$ 525 & \$ 485 & \$ 445 & \$ 405
\end{array}$
A) 1.61 years
B) 1.79 years
C) 1.99 years
D) 2.22 years
E) 2.44 years

Question

Quizplus · Accepted Answer

$$\begin{array} { l c c c c } 
\text { Year } & 0 & 1 & 2 & 3&4 \
\hline \text { Cash flowr }& - \$950  & - \$ 525 & \$ 485 & \$ 445 & \$ 405 \
 \text { PV of CFs }& - \$950  & \$ 477 & \$ 401 & \$ 334 & \$ 277 \
\text { Cumulative CF } & - \$950 & - \$473 & - \$ 72 &  \$ 262& \$ 539\
\text { Payback }=2.22 \text { years }& - & -  &- &2.22&-\
\end{array}$$

Shannon Co A) 161 Years B) 1

Shannon Co A) 161 Years
B) 1