Assuming an appropriate discount rate of 11 percent, what is the discounted payback period on a project
Question:
Year 1 = $ 30,000
Year 2 = $ 35,000
Year 3 = $ 25,000
Year 4 = $ 25,000
Year 5 = $ 30,000
Year 5 = $ 20,000 Discount Rate
Depending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal... Payback Period
Payback period method is a traditional method/ approach of capital budgeting. It is the simple and widely used quantitative method of Investment evaluation. Payback period is typically used to evaluate projects or investments before undergoing them,...
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Related Book For
Foundations of Finance The Logic and Practice of Financial Management
ISBN: 978-0132994873
8th edition
Authors: Arthur J. Keown, John D. Martin, J. William Petty
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