Question
A firm is considering the following projects. Its opportunity cost of capital is 12%. Project 0 1 2 3 4 A -8,500 +1,875 +1,875 +4,750
A firm is considering the following projects. Its opportunity cost of capital is 12%.
Project 0 1 2 3 4
A -8,500 +1,875 +1,875 +4,750 0
B -4,500 0 +4,500 +3,750 +4,750
C -8,500 +1,875 +1,875 +4,750 +8,500
1) What is the payback period on each project?
2) What is the discounted payback period on each project?
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International Finance
Authors: Keith Pilbeam
2nd Edition
0333730976, 978-0333730973
