Craig's Car Wash Inc. is considering a project that has the following cash flow and cost of capital (r) data. What is the project's discounted payback?r = 10.00%Year 0 1 2 3Cash flows −$900 $500 $500 $500a. 1.88 yearsb. 2.09 yearsc. 2.29 yearsd. 2.52 yearse. 2.78 years

Respuesta :

Answer: B - 2.09 years

Explanation:

Discounted payback period calculates how long it takes for the amount invested in a project to be recovered from the cash flows generated from the project.

The calculation used in getting the answer is found in the attachment.

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