Discounted Payback Period Calculation | FIN-Ed

[@PraiseGambiza-b7r]

We divide $5 by 1.1 to the power 1 not 1.01

[@yosufalhashim7777]

You divide by 1.1 not 1.01 because WACC is 10%

[@FIN-Ed]

agree. thanks!

[@LuceliJItza9]

Thank you

[@FIN-Ed]

Just a typo: Discounted payback period of Project A should be 2.59 years (instead of 2.95 years).

[@alejandradc7667]

where did the 12.17 came from. wasn't it suppose to be /12.77? If it is 12.77 than 2.95 is correct. if it is actually 12.17 which who knows where that comes from it should be 3.0016 or how did you came out with 2.58?