A project manager is using the payback method to make the final decision on which project to undertake. The company has a 10% required rate of return and expects a 4% rate of inflation for the following five years. What is the discounted payback of a project that has cash flows as shown in the table?
A) 3.4 years
B) 2.6 years
C) 5.0 years
D) 4.2 years

Question

A project manager is using the payback method to make the final decision on which project to undertake. The company has a 10% required rate of return and expects a 4% rate of inflation for the following five years. What is the discounted payback of a project that has cash flows as shown in the table? 
A) 3.4 years 
B) 2.6 years 
C) 5.0 years 
D) 4.2 years

Quizplus · Accepted Answer

The Answer of A project manager is using the payback method to make the final decision on which project to undertake. The company has a 10% required rate of return and expects a 4% rate of inflation for the following five years. What is the discounted payback of a project that has cash flows as shown in the table? 
A) 3.4 years 
B) 2.6 years 
C) 5.0 years 
D) 4.2 years

A Project Manager Is Using the Payback Method to Make