(All values are in thousands)  Ferlinghetti Enterprises is considering a project with a cost of 105 and the following cash flows: Year Cash Flow 1 25 2 29 3 32 4 37 5 41 6 39   The appropriate discount rate is 8.45% and the company has a 4 year maximum on discounted payback.  The discounted payback period for the project is closest to:   A. 4.2 years   B. 3.5 years   C. 4.0 years.

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
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(All values are in thousands) 

Ferlinghetti Enterprises is considering a project with a cost of 105 and the following cash flows:

Year Cash Flow
1 25
2 29
3 32
4 37
5 41
6 39

 

The appropriate discount rate is 8.45% and the company has a 4 year maximum on discounted payback.  The discounted payback period for the project is closest to:

  A.

4.2 years

  B.

3.5 years

  C.

4.0 years.

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