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Ch 11: Assignment - The Basics of Capital Budgeting Year 0 Year 1 Year 2 Year 3 Cash flow -$6,000,000 $2,400,000 $5,100,000 $2,100,000 Discounted cash

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Ch 11: Assignment - The Basics of Capital Budgeting Year 0 Year 1 Year 2 Year 3 Cash flow -$6,000,000 $2,400,000 $5,100,000 $2,100,000 Discounted cash flow $ $ $ Cumulative discounted cash flow $ $ $ Discounted payback period: years Which version of a project's payback period should the CFO use when evaluating Project Delta, given its theoretical superiority? The regular payback period O The discounted payback period red to the net pre value method-is that they fail to consider the value of the cas One theoretical disadvantage of both payback methods-com flows beyond the point in time equal to the payback period. How much value in this example does the discounted payback period method fail to recognize due to this theoretical deficiency? O $1,714,226 $2,411,755 O $6,168,764 $3,957,217 Ch 11: Assignment - The Basics of Capital Budgeting Year 0 Year 1 Year 2 Year 3 Cash flow -$6,000,000 $2,400,000 $5,100,000 $2,100,000 Discounted cash flow $ $ $ Cumulative discounted cash flow $ $ $ Discounted payback period: years Which version of a project's payback period should the CFO use when evaluating Project Delta, given its theoretical superiority? The regular payback period O The discounted payback period red to the net pre value method-is that they fail to consider the value of the cas One theoretical disadvantage of both payback methods-com flows beyond the point in time equal to the payback period. How much value in this example does the discounted payback period method fail to recognize due to this theoretical deficiency? O $1,714,226 $2,411,755 O $6,168,764 $3,957,217

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