Question
Suppose a company had an initial investment of $45,000. The cash flow for the next five years are $15,000, $13,000, $19,000, $17,000, and $18,000, respectively.
Suppose a company had an initial investment of $45,000. The cash flow for the next five years are $15,000, $13,000, $19,000, $17,000, and $18,000, respectively. The interest rate is 5%. 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?
| Yes | No |
What is the NPV of the project?
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Intermediate Financial Theory
Authors: Jean-Pierre Danthine, John B. Donaldson
3rd Edition
0123865492, 9780123865496
