Don't use ai given answer general accounting question An investment with an initial cost of $20,000 generates cash flows of$6,000 annually for 5 years.If the cash flows are evenly spread over the year and the firm can borrowat 12%, what is the discounted payback period?A) 3.5 yearsB) 3.75 yearsC) 4 yearsD) 4.2 years

We must compute for the discounted payback period for this question. Discounted payback period is a…

Answered: An investment with an initial cost of…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 16P

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An investment with an initial cost of $20,000 generates cash flows of $6,000 annually for 5 years. If the cash flows are evenly spread over the year and the firm can borrow at 12%, what is the discounted payback period? A) 3.5 years B) 3.75 years C) 4 years D) 4.2 years