Question
Garvin Enterprises is considering a project that has the following cash flow and WACC data. What is the projects discounted payback? CF Initial investment (1,050.00)
Garvin Enterprises is considering a project that has the following cash flow and WACC data. What is the projects discounted payback?
| CF | |
| Initial investment | (1,050.00) |
| Cash flow-yr-1 | 510.00 |
| Cash flow-yr-2 | 510.00 |
| Cash flow-yr-3 | 510.00 |
| WACC | 9.0% |
| a) 2.06 yrs | ||
| b) 2.35 yrs | ||
| c) 1.80 yrs | ||
| d) 2.50 yrs |
Please explain how you got the answer, everytime I try I get 2.39
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Personal Finance
Authors: Jeff Madura
3rd Edition
0321357973, 978-0321357977
