A 50- Year Project Has a Cost of $500,000 and Has

Multiple Choice

A 50- year project has a cost of $500,000 and has annual cash flows of $100,000 in years 1-25, and $200,000 in years 26-50. The company's required rate is 8%. Given this information, calculate the
Discounted payback of the project.

A) 9.95years
B) 8.85years
C) 7.75years
D) 6.65years
E) 5.55years