A 30 Year Project Is Estimated to Cost $35 Million

Multiple Choice

A 30 year project is estimated to cost $35 million dollars and provide annual cash flows of $5 per year in years 1-5; $4 million per year in years 6-20 and $2 million per year in years 21-30. If the
Company's required rate of return is 10%, determine the discounted payback for the project.

A) 15.90 years
B) 13.90 years
C) 11.90 years
D) 9.90 years
E) 7.90 years