Rodriquez's Hot Rods Is Considering a New Project with an Initial

Multiple Choice

Rodriquez's Hot Rods is considering a new project with an initial cost of $54,780 and a discount rate of 14 percent.The project is expected to have cash inflows of $27,000 a year for 3 years.What is the discounted payback period?

A) 2.17 years
B) 2.11 years
C) 2.62 years
D) 2.57 years
E) Never