The following four-year project has an initial cost of $1,000,000. The future cash inflows for the next four years are $600,000, $500,000, $400,000, and $400,000, respectively. If the rate of return is 12%, determine the discounted payback period for this project.
A) 2.74 years
B) 2.44 years
C) 2.23 years
D) 1.94 years
E) 1.74 years

Question

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The Answer of The following four-year project has an initial cost of $1,000,000. The future cash inflows for the next four years are $600,000, $500,000, $400,000, and $400,000, respectively. If the rate of return is 12%, determine the discounted payback period for this project.
A) 2.74 years
B) 2.44 years
C) 2.23 years
D) 1.94 years
E) 1.74 years

The Following Four-Year Project Has an Initial Cost of $1,000,000