Question
Year 0 Year 1 Year 2 Year 3 Expected cash flow -$6,000,000 $2,400,000 $5,100,000 $2,100,000 Cumulative cash flow Conventional payback period: years The conventional payback
| Year 0 | Year 1 | Year 2 | Year 3 | |
|---|---|---|---|---|
| Expected cash flow | -$6,000,000 | $2,400,000 | $5,100,000 | $2,100,000 |
| Cumulative cash flow | ||||
| Conventional payback period: |
years |
The conventional payback period ignores the time value of money, and this concerns Fuzzy Buttons CFO. He has now asked you to compute Betas discounted payback period, assuming the company has a 9% cost of capital.
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Asset Allocation Strategies For Mutual Funds Evaluating Performance Risk And Return
Authors: Giuseppe Galloppo
1st Edition
3030761274,3030761282
