Craig's Car Wash Inc. is considering a project that has the following cash flow and cost of capital (r) data. What is the project's discounted payback? r = 10.00% Year 0 1 2 3 Cash flows −$900 $500 $500 $500 a. 2.52 years b. 2.78 years c. 2.09 years d. 1.88 years e. 2.29 years

Craig's Car Wash Inc. is considering a project that has the following cash flow and cost of capital (r) data. What is the project's discounted payback? r = 10.00% Year 0 1 2 3 Cash flows −$900 $500 $500 $500 a. 2.52 years b. 2.78 years c. 2.09 years d. 1.88 years e. 2.29 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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Question

Craig's Car Wash Inc. is considering a project that has the following cash flow and cost of capital (r) data. What is the project's discounted payback?

r =	10.00%
Year	0	1	2	3
Cash flows	−$900	$500	$500	$500

a. 2.52 years

b. 2.78 years

c. 2.09 years

d. 1.88 years

e. 2.29 years

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