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The DUVAL company wishes to develop a new processor for computers. A fundamental parameter to respect in the company for any investment is a payback
The DUVAL company wishes to develop a new processor for computers. A fundamental parameter to respect in the company for any investment is a payback period of less than 4 years.
The project data is as follows:
FCF (0): -28,000
FCF (1): 4,000
FCF (2): 9,000
FCF (3): 10,000
FCF (4): 14,906
The WACC of the DUVAL company was reached at 11%.
Calculate the difference between discounted payback time (in years) and simple payback time (in years): DRA DRS.
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