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ABC Company is considering a project that has the following cash flow and WACC data. What is the project's discounted payback? Note that the company
ABC Company is considering a project that has the following cash flow and WACC data. What is the project's discounted payback? Note that the company uses its WACC for the required rate of return.
| WACC: | 10.00% | |||
| Year | 0 | 1 | 2 | 3 |
| Cash flows | -$950 | $500 | $500 | $500 |
| 1. | 1.69 years | |
| 2. | 2.35 years | |
| 3. | 2.75 years | |
| 4. | 2.16 years | |
| 5. | 2.04 years |
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