Acme Mfg is considering two projects, A & B, with cash flows as shown below: period CFA CFB 0 -50,000 -100,000 1 20,000 60,000 2 20,000 25,000 3 20,000 25,000 4 20,000 25,000 The opportunity cost of capital for A is 14 percent. The opportunity cost of capital for B is 10 percent. What is the discounted payback period of Project A. Write your answer in years correct upto 2 decimal place
Acme Mfg is considering two projects, A & B, with cash flows as shown below: period CFA CFB 0 -50,000 -100,000 1 20,000 60,000 2 20,000 25,000 3 20,000 25,000 4 20,000 25,000 The opportunity cost of capital for A is 14 percent. The opportunity cost of capital for B is 10 percent. What is the discounted payback period of Project A. Write your answer in years correct upto 2 decimal place
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 13P
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Acme Mfg is considering two projects, A & B, with cash flows as shown below:
period CFA CFB
0 -50,000 -100,000
1 20,000 60,000
2 20,000 25,000
3 20,000 25,000
4 20,000 25,000
The
What is the discounted payback period of Project A. Write your answer in years correct upto 2 decimal places
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