Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You are given a project with the following projected cash flows: Year 0 = -800,000 Year 1 = 300,000 Year 2 = 300,000 Year 3

image text in transcribed
image text in transcribed
You are given a project with the following projected cash flows: Year 0 = -800,000 Year 1 = 300,000 Year 2 = 300,000 Year 3 = 300,000 Year 4 = 300,000 The CEO has determined that if the payback period or discounted payback period method is used for evaluation, any project must pay back within 3 years to be accepted Would you accept or reject the project using the payback method of evaluation? O A. Accept B. Not enough information provided to decide C. Reject OD. Indifferent between accepting and rejecting How long does this project take to pay back using the discounted payback period method, assuming a 11% discount rate? Round vour answer to the nearest tenth of a vear (ie 5.5 vears) How long does this project take to pay back using the discounted payback period method, assuming a 11% discount rate? Round your answer to the nearest tenth of a year (i.e. 5.5 years). years What is the NPV of this project at a 10% discount rate? Please round your answer to the nearest dollar

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Real Estate Finance

Authors: Walt Huber, Levin P. Messick

5th Edition

0916772438, 9780916772437

More Books

Students also viewed these Finance questions