A firm is considering investing in a project with the following cash flows: Years 1 3 4 5 Net Cash Flow (OMR) | 60,000 110,000 | | 800,000 250,000 180,000 The initial investment is OMR 900,000 and required rate of return is 10%. Calculate discounted payback period.
A firm is considering investing in a project with the following cash flows: Years 1 3 4 5 Net Cash Flow (OMR) | 60,000 110,000 | | 800,000 250,000 180,000 The initial investment is OMR 900,000 and required rate of return is 10%. Calculate discounted payback period.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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![3. A firm is considering investing in a project with the following cash flows:
Years
1
2
3
4
5
Net Cash Flow (OMR) | 60,000
110,000 | 250,000 | 180,000 | 800,000
The initial investment is OMR 900,000 and required rate of return is 10%. Calculate
discounted payback period.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4799e456-e81b-4b93-aa72-2f339f98f18f%2F3c1fced3-7305-4c59-b864-c8bbfe25b241%2Ffi5e28_processed.jpeg&w=3840&q=75)
Transcribed Image Text:3. A firm is considering investing in a project with the following cash flows:
Years
1
2
3
4
5
Net Cash Flow (OMR) | 60,000
110,000 | 250,000 | 180,000 | 800,000
The initial investment is OMR 900,000 and required rate of return is 10%. Calculate
discounted payback period.
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