Want solution A project will cost $180,000. The after-tax future cash flows are expected to be$50,000 annually for 7 years. Based on this information, what is the project's DPB ifthe interest rate is 8%? An investment project costs $22,366 and has annual cashflows of $6,556 for six years. What is the discounted payback period if the discountrate is zero percent?

Part 1: Discounted Payback Period (DPB) Calculation at 8% Interest RateGiven:Initial Cost:…

Answered: A project will cost $180,000. The…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 16P

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A project will cost $180,000. The after-tax future cash flows are expected to be $50,000 annually for 7 years. Based on this information, what is the project's DPB if the interest rate is 8%? An investment project costs $22,366 and has annual cash flows of $6,556 for six years. What is the discounted payback period if the discount rate is zero percent?
Answer
An investment project costs $16,800 and has annual cash flows of $4, 100 for six years. a. What is the discounted payback period if the discount rate is zero percent? b. What is the discounted payback period if the discount rate is 6 percent? c. What is the discounted payback period if the discount rate is 21 percent?
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(Calculating the payback period, NPV, PI, and IRR) You are considering a project with an initial cash outlay of $75,000 and expected cash flows of $21,750 at the end of each year for six years. The discount rate for this project is 9.9 percent. a. What are the project's payback and discounted payback periods? b. What is the project's NPV? c. What is the project's PI? d. What is the project's IRR? a. The payback period of the project is years. (Round to two decimal places.)
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