Question
You are a financial analyst for Damon Electronics company. The director of capital budgeting has asked you to analyze the proposed capital investment project X.
You are a financial analyst for Damon Electronics company. The director of capital budgeting has asked you to analyze the proposed capital investment project X. The cost of capital is 10 percent. The expected net cash flows are:
Year Net Cash Flow
0 -1500
1 700
2 800
3 100
4 600
What is the discounted payback period of project X?
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Fundamentals of Financial Accounting
Authors: Fred Phillips, Robert Libby, Patricia Libby
5th edition
78025915, 978-1259115400, 1259115402, 978-0078025914
