An investment project has annual cash inflows of $4,900, $3,400, $4,600, and $3,800, for the next four years, respectively. The discount rate is 13 percent. a. What is the discounted payback period for these cash flows if the initial cost is $5,200? b. What is the discounted payback period for these cash flows if the initial cost is $7,300? c. What is the discounted payback period for these cash flows if the initial cost is $10,300?
An investment project has annual cash inflows of $4,900, $3,400, $4,600, and $3,800, for the next four years, respectively. The discount rate is 13 percent. a. What is the discounted payback period for these cash flows if the initial cost is $5,200? b. What is the discounted payback period for these cash flows if the initial cost is $7,300? c. What is the discounted payback period for these cash flows if the initial cost is $10,300?
Chapter1: Financial Statements And Business Decisions
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
Transcribed Image Text:An investment project has annual cash inflows of $4,900, $3,400,
$4,600, and $3,800, for the next four years, respectively. The discount
rate is 13 percent.
a. What is the discounted payback period for these cash flows if the
initial cost is $5,200?
b. What is the discounted payback period for these cash flows if the
initial cost is $7,300?
c. What is the discounted payback period for these cash flows if the
initial cost is $10,300?
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