Question
Project M has a cost of $65,125, expected net cash inflows are $13,000 per year for 8 years, and a cost of capital of 11%.
Project M has a cost of $65,125, expected net cash inflows are $13,000 per year for 8 years, and a cost of capital of 11%. What is the (exact) projects payback period (to the closest year)? *Also, fill the table below with proper numbers* (Up to 7 pts.)
| Period | CF | Cumul. CF | PVIF@11.0% | Discounted CF | SUM |
| 0 | $ (65,125.00) | $ (65,125.00) | 1.0000 | $ (65,125.00) | $ (65,125.00) |
| 1 | $ 13,000.00 |
| 0.9009 |
|
|
| 2 | $ 13,000.00 |
| 0.8116 |
|
|
| 3 | $ 13,000.00 |
| 0.7312 |
|
|
| 4 | $ 13,000.00 |
| 0.6587 |
|
|
| 5 | $ 13,000.00 |
| 0.5935 |
|
|
| 6 | $ 13,000.00 |
| 0.5346 |
|
|
| 7 | $ 13,000.00 |
| 0.4817 |
|
|
| 8 | $ 13,000.00 |
| 0.4339 |
|
|
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Investment Banking A Guide To Underwriting And Advisory Services
Authors: Giuliano Iannotta
1st Edition
3540937641,354093765X
