Question
Suppose a company had an initial investment of $40,000. The cash flow for the next five years are $15,000, $17,000, $15,000, $18,000, and $14,000, respectively.
Suppose a company had an initial investment of $40,000. The cash flow for the next five years are $15,000, $17,000, $15,000, $18,000, and $14,000, respectively. The interest rate is 7%. Enter your answer rounded to 2 DECIMAL PLACES.
What is the discounted payback period?
If the firm requires a discounted payback periods 3 years or less, will the project be accepted?
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Local Public Finance
Authors: René Geissler, Gerhard Hammerschmid, Christian Raffer
1st Edition
3030674681, 978-3030674687
