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Cash Flow Cash Flow Undiscounted Discounted Suppose we require a 10% return on new investments. We have an investment that costs $300 and has
Cash Flow Cash Flow Undiscounted Discounted Suppose we require a 10% return on new investments. We have an investment that costs $300 and has cash flows of $100 per year for five years. To get the discounted payback, we have to discount each cash flow at 10% and then start adding them. Year Accumulated Cash Flow Accumulated Cash Flow discounted Undiscounted 1 $100 $xx $100 $ xx 2 100 XX 200 XX 3 100 XX 300 XX 4 100 XX 400 XX 5 100 XX 500 XX Fill in the unknow numbers, each box for 1 point. (10 points) When is the discounted payback period? (5 points)
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