Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

An investment project costs $ 1 0 , 0 0 0 and has annual cash flows of $ 2 , 8 5 0 for six

An investment project costs $10,000 and has annual cash flows of $2,850 for six years.
a. What is the discounted payback period if the discount rate is zero percent? (Enter 0 if the project never pays back. Do not round intermediate calculations and round your answer to 2 decimal places, e.g.,32.16.)
b. What is the discounted payback period if the discount rate is 5 percent? (Enter 0 if the project never pays back. Do not round intermediate calculations and round your answer to 2 decimal places, e.g.,32.16.)
c. What is the discounted payback period if the discount rate is 19 percent? (Enter 0 if the project never pays back. Do not round intermediate calculations and round your answer to 2 decimal places, e.g.,32.16.)
\table[[a. Discounted payback period,,years],[b. Discounted payback period,,years],[c. Discounted payback period,,years]]
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Markets And Institutions

Authors: Jeff Madura

8th Edition

0324568215, 978-0324568219

More Books

Students also viewed these Finance questions

Question

preparing for and completing job interviews and considering offers.

Answered: 1 week ago