Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Calculate the payback period for a project that has the following cash flows? The required return is 12.0%. Year Cash Flow 0 $ (12,000) 1

Calculate the payback period for a project that has the following cash flows? The required return is 12.0%.

Year Cash Flow
0 $ (12,000)
1 $ 1,000
2 $ 2,000
3 $ 3,000
4 $ 4,000
5 $ 5,000
6 $ 6,000

2.25 years

3.25 years

3.85 years

4.40 years

None of these are correct.

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

The Principles Of Project Finance

Authors: Rod Morrison

1st Edition

1409439828, 9781409439820

More Books

Students also viewed these Finance questions