Question
please verify that I got the right answer: Redesign Inc. is considering a project that has the following cash flow data. (a) What is the
please verify that I got the right answer:
Redesign Inc. is considering a project that has the following cash flow data.
(a) What is the project's payback period?
(b) What is the project's discounted payback period?
Assume the cost of capital is 12%.
Year0123
Cash flows-$500$200$200$200
Answer: A = 2.5 yrs , B= Never
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Case Studies in Finance Managing for Corporate Value Creation
Authors: Robert F. Bruner, Kenneth Eades, Michael Schill
7th edition
007786171X, 77861711, 978-0077861711
