Question
XYZ Ltd. is looking to move to a new technology for its production. The cost of equipment will be $4 million. The company normally uses
XYZ Ltd. is looking to move to a new technology for its production. The cost of
equipment will be $4 million. The company normally uses a discount rate of 12 per cent.
Cash flows that the company expects to generate are as follows (10 Marks).
| Years | CF |
| 0 | $4 000 000 |
| 1-2 | 0 |
| 35 | 845 000 |
| 69 | 1 450 000 |
a. Calculate the payback and discounted payback period for the project
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Bond Markets Analysis And Strategies
Authors: Frank J. Fabozzi, Francesco A. Fabozzi
10th Edition
026204627X, 978-0253337535
