Fernando Designs is considering a project that has the following cash flow and WACC data. What is the project's discounted payback? WACC: 10.00% Year 2 Cash flows $650 $500 $500 $500 Ca. 1.47 years Ob. 1.15 years Cc. 1.24 years od. 1.58 years e. 1.62 years

Financial Management: Theory & Practice
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Author:Brigham
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Chapter26: Real Options
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14. Chapter MC, Section .11, Problem 099
Fernando Designs is considering a project that has the following cash flow and WACC data. What is the project's discounted payback?
WACC:
10.00%
Year
3
Cash flows
-$650
$500
$500
$500
Ca. 1.47 years
Ob. 1.15 years
Cc. 1.24 years
cd. 1.58 years
Ce. 1.62 years
Transcribed Image Text:14. Chapter MC, Section .11, Problem 099 Fernando Designs is considering a project that has the following cash flow and WACC data. What is the project's discounted payback? WACC: 10.00% Year 3 Cash flows -$650 $500 $500 $500 Ca. 1.47 years Ob. 1.15 years Cc. 1.24 years cd. 1.58 years Ce. 1.62 years
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