Your Firm Is Considering an Investment That Will Cost $750,000

Multiple Choice

Your firm is considering an investment that will cost $750,000 today.The investment will produce cash flows of $250,000 in year 1,$300,000 in years 2 through 4,and $100,000 in year 5.What is the investment's discounted payback period if the required rate of return is 10%?

A) 3.33 years
B) 3.16 years
C) 2.67 years
D) 2.33 years