Question
Carmen Electronics bought new machinery for $5 million. This is expected to result in additional cash flows of $1.2 million over the next seven years.
Carmen Electronics bought new machinery for $5 million. This is expected to result in additional cash flows of $1.2 million over the next seven years. The firm's cost of capital is 12 percent. What is the discounted payback period for this project? If the firm's acceptance period is six years and 3 months, will this project be accepted?
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Funds Private Equity Hedge And All Core Structures
Authors: Matthew Hudson
1st Edition
1118790405, 978-1118790403
