Masulis Inc A) 240 Years
B) 2

Multiple Choice

Masulis Inc.is considering a project that has the following cash flow and WACC data.What is the project's discounted payback? $$\begin{array} { l c c c c c } \text { WACC: } & { 10.00 \% } & & & \\\text { Year } & 0 & 1 & 2 & 3 & 4 \\\hline \text { Cash flows } & - \$ 925 & \$ 525 & \$ 485 & \$ 445 & \$ 405\end{array}$$

A) 2.40 years
B) 2.14 years
C) 2.25 years
D) 1.95 years
E) 1.86 years