A project has annual cash flows (including the initial year) of -$120,000, $40,000, $50,000, $55,000, and $45,000. Calculate the discounted payback period for this project if the discount rate is 10%. Round your answer to 2 decimal places.

A project has annual cash flows (including the initial year) of -$120,000, $40,000, $50,000, $55,000, and $45,000. Calculate the discounted payback period for this project if the discount rate is 10%. Round your answer to 2 decimal places.

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter12: Capital Budgeting: Decision Criteria

Section: Chapter Questions

Problem 1P: A project has an initial cost of 40,000, expected net cash inflows of 9,000 per year for 7 years,...

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A project has annual cash flows (including the initial
year) of -$120,000, $40,000, $50,000, $55,000, and
$45,000.
Calculate the discounted payback period for this
project if the discount rate is 10%. Round your answer
to 2 decimal places.

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