Dhofar water is installing new equipment at a cost of 140000 OMR. Expected cash flows from this project over the next three years will be 95000 OMR , 80000 OMR and 65000 OMR. The company's discount rate for such projects is 10 percent. What is the project's discounted payback period? Select one: O a. 1.44 years O b. 1.81 years O c. 2.82 years O d. None of these O e. 1.63 years
Dhofar water is installing new equipment at a cost of 140000 OMR. Expected cash flows from this project over the next three years will be 95000 OMR , 80000 OMR and 65000 OMR. The company's discount rate for such projects is 10 percent. What is the project's discounted payback period? Select one: O a. 1.44 years O b. 1.81 years O c. 2.82 years O d. None of these O e. 1.63 years
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter12: Capital Investment Analysis
Section: Chapter Questions
Problem 3CMA
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![Dhofar water is installing new equipment at a cost of 140000 OMR. Expected cash flows from this project over the next
three years will be 95000 OMR, 80000 OMR and 65000 OMR. The company's discount rate for such projects is 10
percent. What is the project's discounted payback period?
Select one:
O a. 1.44 years
O b. 1.81 years
O c. 2.82 years
O d. None of these
O e. 1.63 years](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F48ee0840-175d-4932-8377-7edd20a9249a%2Fa6b11dac-68af-4c3b-9370-7abe68df46a4%2F7owk22b_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Dhofar water is installing new equipment at a cost of 140000 OMR. Expected cash flows from this project over the next
three years will be 95000 OMR, 80000 OMR and 65000 OMR. The company's discount rate for such projects is 10
percent. What is the project's discounted payback period?
Select one:
O a. 1.44 years
O b. 1.81 years
O c. 2.82 years
O d. None of these
O e. 1.63 years
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