I need true answer of this general accounting question An investment with an initial cost of $20,000 produces cash flows of $6,000 annually for 5 years.If the cash flow is evenly spread out over the year and the firm can borrow at 12%, determine thediscounted payback period.

Step 1: Define Discounted Payback PeriodThe discounted payback period is the time required to…

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 27P

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An investment with an initial cost of $20,000 produces cash flows of $6,000 annually for 5 years. If the cash flow is evenly spread out over the year and the firm can borrow at 12%, determine the discounted payback period.