An investment project has annual cash inflows of $5,000, $5,500, $6,000, and $7,000, and a discount rate of 11 percent. a) What is the discounted payback period for these cash flows if the initial cost is $8.000? b) What is the discounted payback period for these cash flows if the initial cost is $12,000? c) What is the discounted payback period for these cash flows if the initial cost is $16,000?
An investment project has annual cash inflows of $5,000, $5,500, $6,000, and $7,000, and a discount rate of 11 percent. a) What is the discounted payback period for these cash flows if the initial cost is $8.000? b) What is the discounted payback period for these cash flows if the initial cost is $12,000? c) What is the discounted payback period for these cash flows if the initial cost is $16,000?
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 16EB: Project Y cost $8,000 and will generate net cash inflows of $1,500 in year one, $2,000 in year two,...
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An investment project has annual
a) What is the discounted payback period for these cash flows if the initial cost is $8.000?
b) What is the discounted payback period for these cash flows if the initial cost is $12,000?
c) What is the discounted payback period for these cash flows if the initial cost is $16,000?
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