A project has the following cash flows: Year 0 1 2 3 4 Project Cash Flows -$4,724.00 $2,421.00 $2,421.00 $2,421.00 $2,421.00 Its cost of capital is 11.3 percent. What is the project's discounted payback period? O 1.94 years 2.14 years O2.34 years O2.74 years O 2.54 years

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter12: Capital Investment Analysis
Section: Chapter Questions
Problem 4BE: Internal rate of return A project is estimated to cost 463,565 and provide annual net cash flows of...
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A project has the following cash flows:
Year
0
1
2
3
4
Project
Cash Flows
-$4,724.00
$2,421.00
$2,421.00
$2,421.00
$2,421.00
Its cost of capital is 11.3 percent. What is the project's discounted payback period?
O 1.94 years
2.14 years
O2.34 years
O2.74 years
O 2.54 years
Transcribed Image Text:A project has the following cash flows: Year 0 1 2 3 4 Project Cash Flows -$4,724.00 $2,421.00 $2,421.00 $2,421.00 $2,421.00 Its cost of capital is 11.3 percent. What is the project's discounted payback period? O 1.94 years 2.14 years O2.34 years O2.74 years O 2.54 years
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