Question
If a project costs $100,000 and is expected to return $25,000 annually, what is the conventional payback period (PBP)? What is the discounted payback period
If a project costs $100,000 and is expected to return $25,000 annually, what is the conventional payback period (PBP)? What is the discounted payback period (DPBP) at i=10%?
For the discounted payback period, you don't have to show me the table. You can use the following format to show me what's in the table:
Period 0, Cash Flow for Period 0, Cost of Fund for Period 0, Ending cash balance for Period 0;
Period 1, Cash Flow for Period 1, Cost of Fund for Period 1, Ending cash balance for Period1;
...
Period n (when you find the positive ending cash balance), Cash Flow for Period n, Cost of Fund for Period n, Ending cash balance for Period n.
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