Question
You are considering a project with an initial cash outlay of $150,000 and expected free cash flows of $70,000 at the end of each year
You are considering a project with an initial cash outlay of $150,000 and expected free cash flows of $70,000 at the end of each year for 4 years. The required rate of return for this project is 10 percent.
a. What is the project's payback period?
b. What is the project's discounted payback period?
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Financial Institutions Management A Risk Management Approach
Authors: Marcia Cornett, Patricia McGraw, Anthony Saunders
8th edition
978-0078034800, 78034809, 978-0071051590
