Question
1. Assume the firm invests $120,000 today to get $20,000 at Year 1, $30,000 at Year 2, $35,000 at Year 3, $25,000 at Year 4,
1. Assume the firm invests $120,000 today to get $20,000 at Year 1, $30,000 at Year 2, $35,000 at Year 3, $25,000 at Year 4, $40,000 at Year 5, and $16,500 at Year 6. Assuming the Interest (discount) rate of 9.1%, what is the (Non-Discounted) Payback period for this project?
Group of answer choices
A.5.42 years
B.5.31 years
C.4.25 years
D.4.41 years
2. Same facts as above: what is the Discounted Payback Period for this project?
Group of answer choices
A. 4.25 years
B.5.61 years
C. 5.36 years
D. We do not have sufficient information to answer this question.
Answer both Pls
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started