How long will it take to pay back the initial investment

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Discounted Payback. Your company is seriously considering investing in a new project opportunity, but cash flow is tight. Top management is concerned about how long it will take for this new project to pay back the initial investment of $50,000. You have determined that the project should generate inflows of $20,000, $20,000, $40,000, $35,000, and $25,000 for the next five years. Your firm’s required rate of return is 15%. How long will it take to pay back the initial investment?

Reference no: EM131235513

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