A project has an initial cost of $14,500 and produces cash inflows of $4,600, $6,100, and $8,500 over the next three years, respectively. What is the discounted payback period if the required rate of return is 15 percent?

The cash flows after discounted is

Years Annual cash flows Discount factor @15% Present value

0 $14,500 1 $14,500 (A)

1 $4,600.00 0.8695652174 $4,000.00

2 $6,100.00 0.7561436673 $4,612.48

3 $8,500.00 0.6575162324 $5,588.89

Total present value $14,201.36 (B)

Net present value - $298.64 (A - B)

Since net present value is negative, so we cannot determined the discounted pay back period