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?
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?
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter12: Capital Budgeting: Decision Criteria
Section: Chapter Questions
Problem 1P: A project has an initial cost of 40,000, expected net cash inflows of 9,000 per year for 7 years,...
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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:
О а. 1.63 years
ОБ. 1.81 уеars
О с. 2.82 years
O d. None of these
О е. 1.44 years](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb1461a33-dced-447f-ae54-abcc31ff1cdb%2Fe3cbc102-a910-4d3a-b988-ad6f43a9acc8%2Fpg1ud3h_processed.png&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:
О а. 1.63 years
ОБ. 1.81 уеars
О с. 2.82 years
O d. None of these
О е. 1.44 years
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