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 $26,410 and a discount rate of 8 percent.The project is expected to have one cash inflow of $42,500 in Year 2.What is the discounted payback period?

A) .72 years
B) 1.39 years
C) .62 years
D) 1.72 years
E) 1.62 years