Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

If a project costs $120000 and is expected to return $24000 manually,(a) how long does it take to recover the initial investment? (b)what would be

If a project costs $120000 and is expected to return $24000 manually,(a) how long does it take to recover the initial investment? (b)what would be the discounted payback period at i=16%? Assume that the cash flows occur continuously throughout the year .

the answer to (a) is 5 years

I need help on (b) I tried 10.2 years but it's wrong

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Gold And Debt

Authors: William Lyman Fawcett

1st Edition

1144211727, 978-1144211729

More Books

Students also viewed these Finance questions