Question
A project that costs $3000 to iinstall will provide annual cash flows of $800 for each of the next 6 years. The firm accepts projects
A project that costs $3000 to iinstall will provide annual cash flows of $800 for each of the next 6 years. The firm accepts projects with a discounted payback of 5 years or less. Should this project be pursued if the discount rate is 2%? What if the discount rate is 12%? Will the firm's decision change as the discount rate changes?
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Essential Mathematics For Economic Analysis
Authors: Knut Sydsaeter, Peter Hammond, Arne Strom
4th Edition
0273760688, 9780273760689
