Question
Compute the discounted payback statistic for Project D if the appropriate cost of capital is 12 percent and the maximum allowable discounted payback is four
| Compute the discounted payback statistic for Project D if the appropriate cost of capital is 12 percent and the maximum allowable discounted payback is four years. (Do not round intermediate calculations. Round your final answer to 2 decimal places. If the project does not pay back, then enter a "0" (zero).) |
| Project D | ||||||
| Time: | 0 | 1 | 2 | 3 | 4 | 5 |
| Cash flow | $11,900 | $3,440 | $4,360 | $1,700 | $0 | $1,180 |
| Discounted payback period |
| Should the project be accepted or rejected? | ||||
|
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Advanced Accounting
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
10th edition
0-07-794127-6, 978-0-07-79412, 978-0077431808
