Compute the discounted payback statistic for Project C if the appropriate cost of capital is 7 percent and the maximum allowable discounted payback period is three years. (Do not round intermediate calculations and round your final answer to 2 decimal places.) Project C Time: Cash flow: 0 -$1,700 Discounted payback period 1 $760 2 $690 years 3 $730 4 $440 5 $240

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter10: Capital Budgeting: Decision Criteria And Real Option
Section: Chapter Questions
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Compute the discounted payback statistic for Project C if the appropriate cost of capital is 7 percent and the maximum allowable
discounted payback period is three years. (Do not round intermediate calculations and round your final answer to 2 decimal
places.)
Project C
Time:
Cash flow:
-$1,700
Discounted payback period
1
$760
2
$690
years
3
$730
4
$440
5
$240
Transcribed Image Text:Compute the discounted payback statistic for Project C if the appropriate cost of capital is 7 percent and the maximum allowable discounted payback period is three years. (Do not round intermediate calculations and round your final answer to 2 decimal places.) Project C Time: Cash flow: -$1,700 Discounted payback period 1 $760 2 $690 years 3 $730 4 $440 5 $240
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