Question
You are considering a project that requires an initial investment of $90,000 with a cost of capital of 12%. You expect the project to have
You are considering a project that requires an initial investment of $90,000 with a cost of capital of 12%. You expect the project to have a five-year life, and produce cash flows of $18,000 in year 1, $32,000 in year 2, $54,000 in year 3, $26,000 in year 4 and $10,000 in year 5.
What is this projects discounted payback period?
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Basic Finance An Introduction to Financial Institutions, Investments and Management
Authors: Herbert B. Mayo
11th Edition
1285425790, 1285425795, 9781305464988 , 978-1285425795
