Question
Suppose a company had an initial investment of $45,000. The cash flow for the next five years are $17,000, $19,000, $17,000, $19,000, and $20,000, respectively.
Suppose a company had an initial investment of $45,000. The cash flow for the next five years are $17,000, $19,000, $17,000, $19,000, and $20,000, respectively. The interest rate is 8%. Enter your answers rounded to 2 DECIMAL PLACES.
What is the discounted payback period?
If the firm accepts projects with discounted payback periods of less than 4 years, will the project be accepted?
| No | Yes |
What is the NPV of the project?
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Intermediate Financial Management
Authors: Brigham, Daves
10th Edition
978-1439051764, 1111783659, 9780324594690, 1439051763, 9781111783655, 324594690, 978-1111021573
