Question
The Dammon Corporation has the following investment opportunities. Solve fore the Payback and Modified Payback periods for each investment. Machine Cost A: $15,000 B: $22,500
The Dammon Corporation has the following investment opportunities. Solve fore the Payback and Modified Payback periods for each investment.
| Machine Cost | A: $15,000 | B: $22,500 | C: $37,500 |
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| Cash Inflows Each Year: |
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| Year 1 | $ 6,000 | $ 12,000 | $ 0 |
| Year 2 | $ 9,000 | $ 12,000 | $ 30,000 |
| Year 3 | $ 3,000 | $ 10,500 | $ 30,000 |
| Year 4 | 0 | $ 10,500 | $ 15,000 |
| Year 5 | 0 | 0 | $ 15,000 |
What is the payback period?
Answer 1. Payback period for Project A =
Answer 2. Payback period for Project B =
Answer 3. Payback period for Project C =
What is the modified payback period for:
Answer 4. Modified Payback period for Project A =
Answer 5. Modified Payback period for Project B =
Answer 6. Modified Payback period for Project C =
ENTER EACH OF YOUR ANSWERS WITH TWO DECIMAL PLACES: FOR EXAMPLE 2.250
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Advanced Finance Theories
Authors: Ser-Huang Poon
1st Edition
9814460370, 978-9814460378
