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Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on projects of this
Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on projects of this risk class is 8 percent, and that the maximum allowable payback and discounted payback statistics for the project are 2.0 and 3.0 years, respectively. Time: 0 1 2 3 4 5 6 Cash flow $4,800 $1,180 $2,380 $1,580 $1,580 $1,380 $1,180 Use the discounted payback decision rule to evaluate this project What is the discounted payback period?
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