Using the information provided below and assuming the cash flows occur at a constant rate each year, calculate the discounted payback period for Project B
Undiscounted Free cash flow Discounted Free cash flow at 17% cumulative discounted free cash flow
Initial Outlay ($11,000) ($11,000) ($11,000)
Cash flow Year 1 7,000 $5,982.91 ($5,017.09)
2 4,000 $2,922.05 ($2,095.04)
3 3,000 $1,873.11 ($221.93)
4 2,000 $1,067.30 $845.37
A. 2.79
B. 3.21
C. 4.21.
D. 3.9
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