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A firm is considering the following projects. Its opportunity cost of capital is 10%. Cash Flows, $ Project Time - 1 2 3 4 A
A firm is considering the following projects. Its opportunity cost of capital is 10%. | ||||||
Cash Flows, $ | ||||||
Project | Time | - | 1 | 2 | 3 | 4 |
A | - 5,900 | 1,225 | 1,225 | 3,450 | 0 | |
B | - 1,900 | 0 | 1,900 | 2,450 | 3,450 | |
C | - 5,900 | 1,225 | 1,225 | 3,450 | 5,900 | |
Part A: | ||||||
What is the payback period on each project? (Do not round intermediate calculations. Round your answers to the nearest whole number.) | ||||||
Payback Period | ||||||
Project A | years | |||||
Project B | years | |||||
Project C | years | |||||
Part B: | ||||||
What is the discounted payback period on each project? (Do not round intermediate calculations. Round your answers to 2 decimal places. If any of the projects does not pay back on a discounted basis, enter zero ("0").) | ||||||
Discounted Payback Period | ||||||
Project A | years | |||||
Project B | years | |||||
Project C | years |
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