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 0 1 2 3 Cash flows -$900 $500 $500 $500 a. 1.88 years b. 2.09 years c. 2.29 years d. 2.52 years e. 2.78 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 4CMA: Foster Manufacturing is analyzing a capital investment project that is forecast to produce the...
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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
0
1
2
3
Cash flows -$900 $500 $500 $500
a. 1.88 years
b. 2.09 years
c. 2.29 years
d. 2.52 years
e. 2.78 years
Transcribed Image Text: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 0 1 2 3 Cash flows -$900 $500 $500 $500 a. 1.88 years b. 2.09 years c. 2.29 years d. 2.52 years e. 2.78 years
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