An investment project yields $1,000 per year in perpetuity starting from t=1. What is the discounted payback period for this project if the initial cost is $7,300 at t=0? The discount rate per year is 5%. O A. 6.38 years O B. 7.3 years OC. 8.11 years O D.9.31 years
An investment project yields $1,000 per year in perpetuity starting from t=1. What is the discounted payback period for this project if the initial cost is $7,300 at t=0? The discount rate per year is 5%. O A. 6.38 years O B. 7.3 years OC. 8.11 years O D.9.31 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
Section: Chapter Questions
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Transcribed Image Text:An investment project yields $1,000 per year in perpetuity starting from t=1. What is the discounted payback period for this project if the initial cost is $7,300 at t=0? The
discount rate per year is 5%.
O A. 6.38 years
В. 7.3 years
ОС. 8.11 уеars
D. 9.31 years
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