A project manager is using the payback method to make the final decision on which project to undertake. The company has a 15% required rate of return and expects a 5% 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) 3.9 years
B) 4.3 years
C) 4.6 years
D) 4.1 years

Question

A project manager is using the payback method to make the final decision on which project to undertake. The company has a 15% required rate of return and expects a 5% 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) 3.9 years 
B) 4.3 years 
C) 4.6 years 
D) 4.1 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 15% required rate of return and expects a 5% 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) 3.9 years 
B) 4.3 years 
C) 4.6 years 
D) 4.1 years

A Project Manager Is Using the Payback Method to Make