Question
An investment project costs $20,200 and has annual cash flows of $6,500 for 3 years. If the discount rate is 13 percent, what is the
An investment project costs $20,200 and has annual cash flows of $6,500 for 3 years. If the discount rate is 13 percent, what is the payback period?
| 1.61 years | ||
| 3.11 years | ||
| 1.87 years | ||
| 2.61 years | ||
| Never recovers |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Corporate Finance Core Principles and Applications
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford
3rd edition
978-0077971304, 77971302, 978-0073530680, 73530689, 978-0071221160, 71221166, 978-0077905200
