Question
A project has an initial cost of $200,000 and will produce cash inflows of $86,000, $93,600, $42,000 and $38,000 respectively over its 4-year life. Show
A project has an initial cost of $200,000 and will produce cash inflows of $86,000, $93,600, $42,000 and $38,000 respectively over its 4-year life. Show your work.
a. What is the discounted payback period if the discount rate is 10 percent?
b. Should this project be accepted if the required discounted payback period is 3 years?
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Fundamentals Of Multinational Finance
Authors: Michael Moffett, Arthur Stonehill, David Eiteman
6th Edition
0134472136, 978-0134472133
