The cash flows in year-1, year-2, year-3, and year-0 are $4,000, $3,000, $5,000, and -$8,000. Compute the discounted payback period if the required rate of return is 10%.Between 2-3 years2.50-years2.20-yearsNone of the aboveа.b.с.d.

The pay-back period is the period in which the total cash flows generated, recover the initial cost…

Answered: are $4,000, $3,000, $5,000, an required…

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are $4,000, $3,000, $5,000, an required rate of return is 10%.

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 1MC

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Question

The cash flows in year-1, year-2, year-3, and year-0 are $4,000, $3,000, $5,000, and -
$8,000. Compute the discounted payback period if the required rate of return is 10%.
Between 2-3 years
2.50-years
2.20-years
None of the above
а.
b.
с.
d.

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