Question
Estimated Cash Flows for a Construction Truck that ABC Corp is considering to buy are given below: Yr Adjusted CF 0 0 $ (500.00) 1
Estimated Cash Flows for a Construction Truck that ABC Corp is considering to buy are given below:
Yr Adjusted CF 0
| 0 | $ (500.00) |
| 1 | $ 175.00 |
| 2 | $ 175.00 |
| 3 | $ 175.00 |
| 4 | $ 225.00 |
Note: ABCs Policy is to use a Discount Rate of 15%
The Discounted Payback for the Construction Truck is:
a) 2.86
b. 3.10
c. 1.14
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Public Finance
Authors: Charles Francis Bastable
1st Edition
1375520083, 978-1375520089
