A proposed project has the following costs and benefits. Using linear interpolation, the project’s discounted payback period (use i=10%) is _____________. YearCostsBenefits0$4,000 1 $1,2002 $1,2003 1,0004 1,0005 3,0006 2,000 A.6.35 years B.5.82 years C.4.24 years D.3.37 years

Discounted Payback Period refers to the Process of capital Budgeting Procedure Used to determine the…

Answered: osed project has the following costs…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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A proposed project has the following costs and benefits. Using linear interpolation, the project’s discounted payback period (use i=10%) is _____________.

Year	Costs	Benefits
0	$4,000
1		$1,200
2		$1,200
3		1,000
4		1,000
5		3,000
6		2,000

	A.	6.35 years
	B.	5.82 years
	C.	4.24 years
	D.	3.37 years

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