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Project L costs $45,000, its expected cash inflows are $11,000 per year for 8 years, and...

Project L costs $45,000, its expected cash inflows are $11,000 per year for 8 years, and its WACC is 8%. What is the project's discounted payback? Do not round intermediate calculations. Round your answer to two decimal places. ______ years

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Answer #1
YEAR CASH FLOW Discounted cash flow Cumulative cash flow

Cumulative discounted cash flow

0 -45000 -45000 -45000 -45000
1 11000 10185.18519 -34000 -34814.81481
2 11000 9430.727023 -23000 -25384.08779
3 11000 8732.154651 -12000 -16651.93314
4 11000 8085.328381 -1000 -8566.60476
5 11000 7486.415167 10000 -1080.189592
6 11000 6931.865896 21000 5851.676304

Project discounted payback = 5 + 1080.189592/6931.865896

= 5.16 years

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