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DISCOUNTED PAYBACK Project L costs $25,000, its expected cash inflows are $5,000 per year for 8 years, and its WACC is 11%. W
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Answer #1

We see that the project's discounted payback period=7-(-25000+5000/1.11+5000/1.11^2+5000/1.11^3+5000/1.11^4+5000/1.11^5+5000/1.11^6+5000/1.11^7)/(5000/1.11^8)=7.663254578

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