Question
What is the discounted payback period for a project that costs $100 today, pays $70 in one year, and another $70 in two years if
What is the discounted payback period for a project that costs $100 today, pays $70 in one year, and another $70 in two years if the cost of capital is 10% per year?
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Step: 1
The discounted payback period is the length of time it takes for the sum of the discounted cash flows to equal the initial investment To calculate this we need to discount each cash flow ...
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Fundamentals Of Corporate Finance
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
13th Edition
1265553602, 978-1265553609
