Coughlin Motors is considering a project with the following expected cash flows: Year Project Cash Flow 0 -$700 million 1 200 million 2 370 million 3 225 million 4 700 million The project's WACC is 10 percent. What is the project's discounted payback? a. 3.15 years b. 4.09 years c. 1.62 years d. 2.58 years e. 3.09 years

Financial And Managerial Accounting
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Chapter26: Capital Investment Analysis
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Coughlin Motors is considering a project with the following expected cash flows:
Year Project Cash Flow
0 -$700 million
1 200 million
2 370 million
3 225 million
4 700 million
The project's WACC is 10 percent. What is the project's discounted payback?
a. 3.15 years
b. 4.09 years
c. 1.62 years
d. 2.58 years
e. 3.09 years

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