Question
The conventional payback. Ignores the time value of money and this concerns blue hamster CFO. He has now asked you to compute omega's discounted payback
The conventional payback. Ignores the time value of money and this concerns blue hamster CFO. He has now asked you to compute omega's discounted payback period, Assuming the company has an 8% cost of capital
Complete the following table and perform any necessary calculations round the discounted cash flow values to the nearest whole dollar and the discount payback period to the nearest 2 decimal places. Again be sure to complete the entire table even if the values exceed the point at which the cost of the project is recovered.
Cash flow year: -$6000000, $2400000, $5100000, $2100000
Discounted cash flows: (four blanks)
Cumulative discounted cash flow: (four blanks)
Discounted payback period: (one blank)
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