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Consider the Following Four-Year Project

Question 2

Multiple Choice

Consider the following four-year project.The initial outlay or cost is $180,000.The respective cash inflows for years 1,2,3 and 4 are: $100,000,$80,000,$80,000 and $20,000.What is the discounted payback period if the discount rate is 11%?


A) About 1.667 years
B) About 2.000 years
C) About 2.135 years
D) About 2.427 years

Correct Answer:

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