Calculating Discounted Payback An investment project has annual cash inflows of $5,000, $5,500, $6,000, and $7,000, and a discount rate of 12 percent. What is the discounted payback period for these cash flows if the initial cost is $8,000? What if the initial cost is $12,000? What if it is $16,000?

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
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Problem 4CMA: Foster Manufacturing is analyzing a capital investment project that is forecast to produce the...
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Calculating Discounted Payback An investment project has annual cash inflows
of $5,000, $5,500, $6,000, and $7,000, and a discount rate of 12 percent. What is the
discounted payback period for these cash flows if the initial cost is $8,000? What if the
initial cost is $12,000? What if it is $16,000?
Transcribed Image Text:Calculating Discounted Payback An investment project has annual cash inflows of $5,000, $5,500, $6,000, and $7,000, and a discount rate of 12 percent. What is the discounted payback period for these cash flows if the initial cost is $8,000? What if the initial cost is $12,000? What if it is $16,000?
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