Annmarie Is Considering a Project Which Will Produce Cash Inflows

Multiple Choice

Annmarie is considering a project which will produce cash inflows of $1,200 a year for 6 years. The project has a 15 % required rate of return and an initial cost of $3,400. What is the discounted payback period?

A) 2.83 years
B) 2.92 years
C) 3.96 years
D) 3.99 years
E) 4.13 years