Coughlin Motors is considering a project with the following expected cash flows: Year Project Cash Flow 0 -$700 million 1 200 million 2 370 million 3 225 million 4 700 million The project's WACC is 10 percent. What is the project's discounted payback? a. 3.15 years b. 4.09 years c. 1.62 years d. 2.58 years e. 3.09 years
Coughlin Motors is considering a project with the following expected cash flows: Year Project Cash Flow 0 -$700 million 1 200 million 2 370 million 3 225 million 4 700 million The project's WACC is 10 percent. What is the project's discounted payback? a. 3.15 years b. 4.09 years c. 1.62 years d. 2.58 years e. 3.09 years
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
Problem 1PS
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Coughlin Motors is considering a project with the following expected cash flows:
Year Project Cash Flow
0 -$700 million
1 200 million
2 370 million
3 225 million
4 700 million
The project's WACC is 10 percent. What is the project's discounted payback?
a. 3.15 years
b. 4.09 years
c. 1.62 years
d. 2.58 years
e. 3.09 years
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