Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

An investment project costs $10,000 and has annual cash flows of $2,980 for six years. a.What is the discounted payback period if the discount rate

image text in transcribed
An investment project costs $10,000 and has annual cash flows of $2,980 for six years. a.What is the discounted payback period if the discount rate is 0 percent? (Enter O if the project never pays back on a discounted payback basis. 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 4 percent? (Enter O if the project never pays back on a discounted payback basis. 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 21 percent? (Enter O if the project never pays back on a discounted payback basis. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Answer is complete but not entirely correct. 3.34 years Discounted payback period Discounted payback period 3.68 years 6Xyears Discounted payback period

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

Tested Forex Strategies Learn The Proven Strategies Of Forex News Trading

Authors: Wayne Walker

1st Edition

1546393102, 978-1546393108

More Books

Students also viewed these Finance questions

Question

=+a) Using the data provided, check the conditions for this test.

Answered: 1 week ago

Question

What is group replacement? Explain with an example. (2-3 lines)

Answered: 1 week ago