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Company DEF is looking at a project requiring a $12,000 investment which, in turn, will generate the following cash flows: year-1 $1,750; year-2 $4,000; year-3 $5,200; year-4 $10,000. The firm's fost of capital is 10.5%. What is the payback period or this project? 2.8 years 2.4 years This project does not have a payback 3.5 years

Company DEF is looking at a project requiring a $12,000 investment which, in turn, will generate the following cash flows: year-1 $1,750; year-2 $4,000; year-3 $5,200; year-4 $10,000. The firm's fost of capital is 10.5%. What is the payback period or this project? 2.8 years 2.4 years This project does not have a payback 3.5 years

Essentials Of Investments
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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Company DEF is looking at a project requiring a $12,000 investment which, in turn, will generate the following cash flows: year-1 $1,750; year-2 $4,000; year-3 $5,200; year-4 $10,000. The firm's fost of capital is 10.5%. What is the payback period or this project? 2.8 years 2.4 years This project does not have a payback 3.5 years
Transcribed Image Text:Company DEF is looking at a project requiring a $12,000 investment which, in turn, will generate the following cash flows: year-1 $1,750; year-2 $4,000; year-3 $5,200; year-4 $10,000. The firm's fost of capital is 10.5%. What is the payback period or this project? 2.8 years 2.4 years This project does not have a payback 3.5 years
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