Find the Discounted Payback period for the following project. The discount rate is 7% Project X...

Question

Question

Find the Discounted Payback period for the following project. The discount rate is 7% Project X Initial Outlay $8,133 Year 1

Answer 1

Answer #1

Discounted Payback is the period in which initial investmnet is recovered after considering the time value of money.

Disc PBP = Year in which Least +ve CB + [ CB in that Year / Disc CF in next Year ]

= 2 + [ 1446.77 / 4879.83 ]

= 2 + 0.30

= 2.30 Years

Answer 2

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