Question
Suppose a company had an initial investment of $45,000. The cash flow for the next five years are $18,000, $15,000, $19,000, $15,000, and $14,000, respectively.
Suppose a company had an initial investment of $45,000. The cash flow for the next five years are $18,000, $15,000, $19,000, $15,000, and $14,000, respectively. The interest rate is 5%. Enter your answer rounded to 2 DECIMAL PLACES.
A) What is the discounted payback period?
B) If the firm requires a discounted payback periods 3 years or less, will the project be accepted?
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Finance For Executives Managing For Value Creation
Authors: Gabriel Hawawini, Claude Viallet
7th Edition
1473778913, 978-1473778917
