Question
You are reviewing a new project and have estimated the following cash flows: Year 0: CF = -35,000Year 1: CF = 13,000Year 2: CF =
You are reviewing a new project and have estimated the following cash flows:
Year 0: CF = -35,000Year 1: CF = 13,000Year 2: CF = 14,000Year 3: CF = 16,000Year 4: CF = 16,000
Your required return for assets of this risk level is 12%. What is the discounted payback period? Should we accept it based on our Payback rule of 2 years?
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Personal Finance
Authors: Jeff Madura
6th Edition
0134082915, 9780134082912
