payback period and discounted payback period

CFA Level I
#1

there was a question where they had asked discounted payback period and payback period i was getting payback period as 2.4 and dpb as 3.02 i checked pb -2 year and dpb - 3 year did i make nay mistake in calculation? as 2.4 cant me approximated to 2 or 3. i still approximated it to tow years. what was the riht answer?

#2

You got it right…besides you can’t round 2.4 up to 3

#3

I think I got 2.XX and 3.XX years in my calculation therefore chose 3 and 4 years.

#4

The question said closest to…2.4 is closer to 2 than 3

#5

2 and 3, 2.4 is clearly closer to 2 than it is to 3

#6

i got 2.4 and 3 as well and chose 2 and 3

#7

I agree. I kept thinking between choosing (2,3) and (3,4) and in the end picked up (3,4)

#8

i chosed 2 then i said discounted payback should be longer , so definately it will be 3 years

#9

i picked 2 and 3 as well.

#10

I remember the same question, I also got 2.4 but picked 2

#11

I got 2 as well because it said CLOSEST to. I am not sure if this is right. Afterwards, my friend was saying, since it is the pay back period, you might have to round up, it is just automatically implied… but i am not sure

#12

in an actual business setting you wouldnt round it at all, so I would assume normal math rules for rounding