Compute the Discounted Payback statistic for Project X and recommend whether the firm should accept or reject the project with the cash flows shown below if the appropriate cost of capital is 14 percent and the maximum allowable discounted payback is 3 years. Time: Cash flow: 3.46 years, reject 2.46 years, accept O2.85 years, accept O 4.85 years, reject 0 -960 1 360 2 620 3 4 540 440 5 290
Compute the Discounted Payback statistic for Project X and recommend whether the firm should accept or reject the project with the cash flows shown below if the appropriate cost of capital is 14 percent and the maximum allowable discounted payback is 3 years. Time: Cash flow: 3.46 years, reject 2.46 years, accept O2.85 years, accept O 4.85 years, reject 0 -960 1 360 2 620 3 4 540 440 5 290
Chapter11: Capital Budgeting And Risk
Section: Chapter Questions
Problem 14P
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