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Suppose a company had an initial investment of $40,000. The cash flow for the next five years are $15000, $16000, $20000, $13000 and $15000 respectful.
Suppose a company had an initial investment of $40,000. The cash flow for the next five years are $15000, $16000, $20000, $13000 and $15000 respectful. The interest rate is 6%. Enter into two decimal places. What is the discounted payback period?
if the firm accepts projects with discounted payback periods of less than 3 years, will the project be accepted?
My answer is 4.65 years, and yes for the second question. Please is this right. Please show calculation so I can practice if I am wrong.
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