Question
Bey Bikes is considering a project that has the following cash flow and WACC data. What is the projects discounted payback? Initial investment (1,080.00) Cash
Bey Bikes is considering a project that has the following cash flow and WACC data. What is the projects discounted payback?
| Initial investment | (1,080.00) |
| Cash flow-yr-1 | 640.00 |
| Cash flow-yr-2 | 608.00 |
| Cash flow-yr-3 | 576.00 |
| Cash flow-yr-4 | 486.40 |
| WACC | 11.0% |
| A. | 1.72 yrs | |
| B. | 1.50 yrs | |
| C. | 2.02 yrs | |
| D. | 2.40 yrs |
Please explain step-by-step.
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Chains Of Finance How Investment Management Is Shaped
Authors: Diane-Laure Arjalies, Philip Grant, Iain Hardie, Donald MacKenzie, Ekaterina Svetlova
1st Edition
0198802943, 978-0198802945
