A Project Has an Initial Cost of $18,400 and Expected

Multiple Choice

A project has an initial cost of $18,400 and expected cash inflows of $7,200, $8,900, and $7,500 over Years 1 to 3, respectively. What is the discounted payback period if the required rate of return is 11.2 percent?

A) 2.31 years
B) 2.45 years
C) 2.55 years
D) 2.87 years
E) Never