An investment project requires an initial outlay of $12,000 and is expected to generate annual cash inflows of $5,000, $6,000, $7,000, and $8,000 over the next four years. If the discount rate is 12%, what is the discounted payback period for this investment?
An investment project requires an initial outlay of $12,000 and is expected to generate annual cash inflows of $5,000, $6,000, $7,000, and $8,000 over the next four years. If the discount rate is 12%, what is the discounted payback period for this investment?
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 27P
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Transcribed Image Text:An investment project requires an initial outlay of $12,000
and is expected to generate annual cash inflows of $5,000,
$6,000, $7,000, and $8,000 over the next four years. If the
discount rate is 12%, what is the discounted payback period
for this investment?
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