Question
A Davis Inc., is considering a project with the following cash flows. Year Cash Flows 0 -$50,000 1 $10,823 2 $15,979 3 $20,657 4 $49,897
A Davis Inc., is considering a project with the following cash flows.
| Year | Cash Flows |
| 0 | -$50,000 |
| 1 | $10,823 |
| 2 | $15,979 |
| 3 | $20,657 |
| 4 | $49,897 |
| 5 | $114,548 |
What is the discounted payback period for this project if the appropriate discount rate is 10 percent?
B
Davis Inc., is considering a project with the following cash flows.
| Year | Cash Flows |
| 0 | -$55,939 |
| 1 | $10,307 |
| 2 | $18,506 |
| 3 | $20,784 |
| 4 | $26,407 |
| 5 | $33,463 |
What is the net present value (NPV) for this project if the appropriate discount rate is 7 percent?
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The Compensation Committee Handbook
Authors: James F. Reda, Stewart Reifler, Michael L. Stevens
4th Edition
1118370619, 978-1118370612
