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Suppose a company had an initial investment of $50,000. The cash flow for the next five years are $18,000, $15,000, $13,000, $16,000, and $17,000,
Suppose a company had an initial investment of $50,000. The cash flow for the next five years are $18,000, $15,000, $13,000, $16,000, and $17,000, respectively. The interest rate is 11%. 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? What is the NPV of the project?
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Contemporary Business Mathematics with Canadian Applications
Authors: S. A. Hummelbrunner, Kelly Halliday, Ali R. Hassanlou, K. Suzanne Coombs
11th edition
134141083, 978-0134141084
