Current Attempt in Progress Your answer is incorrect. A $70,000 investment yields an annual return of $12,962.96 the first year; thereafter, annual returns increase at an annual rate of 4%. Based on a MARR of 6%, what is the discounted payback period for the investment? Click here to access the TVM Factor Table calculator. n = years Round entry to a whole number. eTextbook and Media Hint Assistance Used Assistance Used The time required for an investment to be fully recovered, including the time value of money, is the length of time required for the cumulative present worth to become positive using i = MARR; it is called the discounted payback period (DPBP) for an investment. Knowing all the data about the investment, the discounted payback period may be expressed from the formula corresponding to all the conditions mentioned in the problem. Logarithms can be used. This problem can be solved by using a mathematical formula, or by using the tabulated factor, or by using Excel® SOLVER and GOAL SEEK tools. Regardless of whether you use Goal Seek or SOLVER, set the present worth of the geometric series equal to the value of the investment by changing the discounted payback period. In Excel® SOLVER, select a Solving Method: GRG Nonlinear. There are no constraints to be determined. Note that SOLVER is an Excel® Add-In that may have to be installed.
Current Attempt in Progress Your answer is incorrect. A $70,000 investment yields an annual return of $12,962.96 the first year; thereafter, annual returns increase at an annual rate of 4%. Based on a MARR of 6%, what is the discounted payback period for the investment? Click here to access the TVM Factor Table calculator. n = years Round entry to a whole number. eTextbook and Media Hint Assistance Used Assistance Used The time required for an investment to be fully recovered, including the time value of money, is the length of time required for the cumulative present worth to become positive using i = MARR; it is called the discounted payback period (DPBP) for an investment. Knowing all the data about the investment, the discounted payback period may be expressed from the formula corresponding to all the conditions mentioned in the problem. Logarithms can be used. This problem can be solved by using a mathematical formula, or by using the tabulated factor, or by using Excel® SOLVER and GOAL SEEK tools. Regardless of whether you use Goal Seek or SOLVER, set the present worth of the geometric series equal to the value of the investment by changing the discounted payback period. In Excel® SOLVER, select a Solving Method: GRG Nonlinear. There are no constraints to be determined. Note that SOLVER is an Excel® Add-In that may have to be installed.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Please provide steps by step answer with proper calculation with final answer......
Transcribed Image Text:Current Attempt in Progress
Your answer is incorrect.
A $70,000 investment yields an annual return of $12,962.96 the first year; thereafter, annual returns increase at an annual rate of 4%.
Based on a MARR of 6%, what is the discounted payback period for the investment?
Click here to access the TVM Factor Table calculator.
n =
years
Round entry to a whole number.
eTextbook and Media
Hint
Assistance Used
Assistance Used
The time required for an investment to be fully recovered, including the time value of money, is the length of time required for the
cumulative present worth to become positive using i = MARR; it is called the discounted payback period (DPBP) for an investment.
Knowing all the data about the investment, the discounted payback period may be expressed from the formula corresponding to
all the conditions mentioned in the problem. Logarithms can be used.
This problem can be solved by using a mathematical formula, or by using the tabulated factor, or by using Excel® SOLVER and
GOAL SEEK tools. Regardless of whether you use Goal Seek or SOLVER, set the present worth of the geometric series equal to the
value of the investment by changing the discounted payback period. In Excel® SOLVER, select a Solving Method: GRG Nonlinear.
There are no constraints to be determined. Note that SOLVER is an Excel® Add-In that may have to be installed.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 3 images
Recommended textbooks for you
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education