Question
Suppose a company had an initial investment of $45,000. The cash flow for the next five years are $18,000, $18,000, $14,000, $19,000, 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, $18,000, $14,000, $19,000, and $14,000, respectively. The interest rate is 6%. 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? Yes No
What is the NPV of the project?
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Strategic Public Finance
Authors: Stephen Bailey
1st Edition
0333922212, 978-033392221
