Can you show all calculations please, answer is 4.79

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Can you show all calculations please, answer is 4.79

A company project has the following projected cashflow:
Year O:-£5000
Year 1: £2500
Year 2: £1000
Year 3: £1000
Year 4: £500
Year 5: £1,647
Year 6: £1,042
Year 7: £1,038
Calculate the discounted payback period, assuming a discount rate of 10%.
Give your answer to 2 decimal places.
X (no answer)
Correct Answer: 4.79
Transcribed Image Text:A company project has the following projected cashflow: Year O:-£5000 Year 1: £2500 Year 2: £1000 Year 3: £1000 Year 4: £500 Year 5: £1,647 Year 6: £1,042 Year 7: £1,038 Calculate the discounted payback period, assuming a discount rate of 10%. Give your answer to 2 decimal places. X (no answer) Correct Answer: 4.79
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