project l costs $50,000, its expected cash inflows are $12,000 per year for 8 years, and its wacc is 12%. what is the project's discounted payback? do not round intermediate calculations. round your answer to two decimal places.

Cash inflow is the net amount of cash and cash equivalents coming into and going out of a business. Cash inflows are represented by money received, and outflows are represented by money spent.

The ability to generate positive Cash inflows, or more specifically, the potential to maximize long-term free cash flow, is ultimately what determines a company's ability to create discounted payback for shareholders. After deducting any funds used for capital expenditures, a company's free cash inflow (FCF) is the cash it generates from its regular business activities (CapEx).

YEAR Cash Discounted Cumulative Cumulative

Flow cash flow cash flow discounted cash flow

0 -50000 -50000 -50000 -50000

1 12000 10714.28571 -38000 -39285.71429

2 12000 9566.326531 -26000 -29719.38776

3 12000 8541.362974 -14000 -21178.02478

4 12000 7626.216941 -2000 -13551.80784

5 12000 6809.122269 10000 -6742.685572

6 12000 6079.573454 22000 -663.1121177

7 12000 5428.190584 34000 4765.078466

8 12000 4846.598736 46000 9611.677202

Present value = Future value/(1+i) ⁿ

i = interest rate per period

n= number of periods

discounted payback = 6 + 663.1121177/5428.190584

discounted payback = 6.12 years

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