What is the discounted payback period

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Question - Popps Ltd is considering the purchase of an asset for £120,000. This asset will generate the following cash flows:

Year £

Year 1 15,000

Year 2 25,000

Year 3 40,000

Year 4 40,000

Year 5 35,000

Year 6 30,000

Using a discount rate of 20%, what is the discounted payback period? Explain your findings.

Reference no: EM133037202

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