What is the project''s discounted payback period

Reference no: EM13256818

Roswell Energy Company is installing new equipment at a cost of $10 million. Expected cash flows from this project over the next five years will be $1,045,000, $2,550,000, $4,125,000, $6,326,750, and $7,000,000. The company's discount rate for such projects is 14 percent. What is the project's discounted payback period? Answer

4.2 years

4.4 years

4.8 years

5.0 years

Reference no: EM13256818

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