Question
Consider a project with the following cash flows: Year Cash Flow 0 -$15,250 1 $5,870 2 $2,390 3 $4,720 4 $5,110 Consider the project in
Consider a project with the following cash flows:
| Year | Cash Flow |
| 0 | -$15,250 |
| 1 | $5,870 |
| 2 | $2,390 |
| 3 | $4,720 |
| 4 | $5,110 |
Consider the project in the previous question for which you computed the payback period. At what discount rate would you be indifferent between accepting the project and rejecting it?
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Basic Finance An Introduction to Financial Institutions, Investments and Management
Authors: Herbert B. Mayo
11th Edition
1285425790, 1285425795, 9781305464988 , 978-1285425795
